![]() ![]() It projects restructuring charges of $1 billion in the year, down from a prior estimate of $2 billion after recording some of the charges in the fourth quarter. It now sees total expenses for the full year 2023 in the range of $89 billion to $95 billion, from a previous forecast of $94 billion to $100 billion. Meta expects to report first-quarter revenue in the range of $26 billion to $28.5 billion. Declaring 2023 as Meta’s “year of efficiency,” Zuckerberg outlined further cost-cutting measures, including 10,000 more layoffs in addition to the 11,000 previously announced. Investors also welcomed a $40 billion increase to its share repurchase program. Meta benefited in the three months ended March 31 by reporting better-than-expected fourth-quarter results and presenting a rosier outlook for first-quarter revenue. Meta’s changes are already showing up in results. “After that we should be able to profitably grow Reels while keeping up with the demand that we see,” chief executive Mark Zuckerberg said. Measured by revenue generated by minute watched, Reels is currently unprofitable but the company expects it to break even by the end of this year or early next year. Reels plays on Facebook and Instagram have more than doubled in the past year, and the number of people resharing Reels has more than doubled in the past six months, according to the company. Meta is especially focused on incorporating ads into its fast-growing short-form video content known as Reels, using artificial intelligence to target customers with more-personalized ads based on their behavior and the context of the sites they visit. He called the trading declines "an overreaction.In addition, Apple has tinkered with its privacy feature to allow advertisers more access to data after certain thresholds are met, which has somewhat softened the impact from its original version. It was the guidance that spooked people," Mr Jeffress said. "The results, taken in their entirety, were okay. Mr Jeffress pointed to strong or increasing numbers Meta reported for user engagement, advertising and revenue per user. Some portfolio managers also saw a reason to buy.ĭavid Jeffress, portfolio manager at Laffer Tengler Investments, said on Thursday the firm was looking to add to its stake in Meta as the stock declines. It was also a popular stock for retail investors, who appeared to be enthusiastically buying the dip. Other institutional investors were also heavy owners. Meta was a widely held stock by various investor groups, including hedge funds, according to recent data, leaving a number of funds potentially exposed by the wipe-out in its shares. "The tech sell-off spilled over to broader equity markets this morning and, with the Fed preparing to raise interest rates, we could see more volatility going forward." It also reported a rare decline in profit due to a sharp increase in expenses. Meta sank after forecasting revenue that was well below analysts' expectations for the current quarter, a disappointment for a company that investors have become accustomed to delivering spectacular growth. The broader S&P 500 and blue chip Dow Jones Industrial Average had smaller, but still substantial, falls. The tech focused Nasdaq, of which Meta is a major part, plunged 3.7 per cent, to close at 13,879. That means a big swing in either direction for such a company can do much to sink or lift the broader market. Meta's lofty stock price, as with several other big communications and technology companies, has an outsized influence on markets. ![]() Mr Zuckerberg was not the only one losing a lot of money overnight. However, according to the Forbes real time billionaires index, Mr Zuckerberg still has an estimated personal fortune of nearly $US85 billion ($119 billion). ![]() Mr Zuckerberg's nearly $US30 billion drop in personal wealth was the second-largest one-day personal loss in history according to US financial news outlet CNBC.Īccording to CNBC, the biggest one-day personal drop in wealth was a $US35 billion loss for Tesla founder Elon Musk in November. This decline marked the company's worst one-day loss since its Wall Street debut in 2012, and the biggest single-day loss of dollar value by any listed firm. ![]()
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