On Tuesday evening, Facebook’s parent company, the Meta continued the quarterly rapid reporting season for large American companies. Although the company made a lot of money, the price of its shares fell 17 percent after the announcement. The market value of the company decreased by about 200 billion dollars due to the exchange rate movement.
Earnings were fine
Based on the Meta report $36.5 billion in revenue brought together in the last quarter, almost all of which came from advertising. The company its profit after tax is 12.4 billion dollars was, which equates to a profit of $4.71 per share. Mark Zuckerberg’s company in both indicators exceeded analysts’ expectationswho expected earnings of $4.36 per share on revenue of $36.2 billion.
Meta was also able to increase it further user baseaccording to the report, in the last quarter, the number of daily active users exceeded 3.24 billion people. This means that a 40 percent of the world’s population uses applications owned by the company on a daily basis (Facebook, Instagram, Messenger, WhatsApp).
Where is the problem?
Meta expects half a million dollars less revenue for the next quarter than expected, but this does not seem significant for a company whose annual revenue is around $150 billion. Meanwhile, the Zuckerbergs with higher expenses instead of the previously indicated 96.5 billion dollars, they expect costs of 97.5 billion dollars, taking the year as a whole into account.
The increased expenses are of course related to the development of artificial intelligence, which Zuckerberg will try to monetize even more strongly in the future. Related to this however, we still have to wait for the release of new productsthis was also partly due to the drop in the exchange rate.
The stock market was upside down
The market reaction seems a little exaggerated. Meta performed better than expected in the previous quarter, its revenues and user base increased compared to the previous period, and their forecasts for the next quarter were only minimally weaker than expected, so the 17 percent drop in shares seems unjustified. In addition, most of their expenses related to artificial intelligence developments will end up in the pockets of companies such as Nvidia or Super Micro Computer, whose share price also fell a few percent after Meta’s report.
On the other hand, the financial data of Tesla’s quick report on Tuesday fell far short of expectations, yet the value of the company’s papers rose by around 10 percent.
Boeing is not doing well
The problems of the leading aircraft manufacturing company are increasing. Although the company posted higher-than-expected revenue of $16.6 billion over the past three months, it still closed the first quarter with a loss. The company posted a loss of $1.13 per share and burned through the most cash in four years. The company, moreover huge debt scrolls in front of you, and if all that wasn’t enough, a Credit rating company Moody’s also downgraded Boeing. As a result of the news, the stock price fell further and is at a one-year low.
Ford is cracking
Also on Wednesday https://twitter.com/StockMKTNewz/status/1783230336991662405 the Fordwhich is 3 billion more than expected, in total It reached $43 billion in revenue. The automaker’s earnings per share also beat expectations at $0.49.
The IBM also well-earned On $14.5 billion in revenue earned $1.68 per share.
Microsoft and Google are coming
It will publish its quick report after the stock market closes on Thursday Microsoftas well as Google’s parent company, is Alphabet. In addition to the two tech giants, the pharmaceutical manufacturer Merckwhich recently posted a huge loss Intelas well as the manufacturer of construction and mining equipment Caterpillar its reports will be worth following closely. The week ends on Friday with the reports of the largest oil companies.
Tags: Mark Zuckerberg proud
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