Investors Celebrate as Meta Announces Q1 Earnings

Investors Celebrate as Meta Announces Q1 Earnings

May 20, 2022 0 By Keith Jacobs

Facebook CEO, Mark Zuckerburg, decided to group all the mega projects of his company under one name called Meta. The results for the first quarterly performance of Meta were recently published. Meta holds a shareholder meeting on Wednesday to share the profit projections of the fintech giant. Following the current stock market trends, there was an anticipation of a downtrend.

Meta Collected $27.9 Billion in Revenue

However, the shareholders concluded that per-share returns were lower than expectations. Financial Bloomberg analysts break down the Q1 financial reports in detail. As per the Bloomberg article, Meta produced $27.9 billion in revenue; meanwhile, the expectations were set at $2.56 billion. The Adjusted EPS, which is considered an operational performance indicator, remained at $2.72 billion in comparison to the $2.56 billion estimations. Meanwhile, the Ad revenue was also at $27 billion as opposed to $27.48 billion projections.

Bloomberg financial analysts also mentioned that Meta shares gained 9% price appreciation in the first quarter of the current year. Last year, Facebook users were subtracted by 1 million from its daily active user base. Meta management is anticipating its operating costs to be $90 billion, which is a smaller bracket than last year’s projections of $95 billion.

The expectations for the second quarter of Meta fall somewhere in the $28 to $30 billion range. On the other hand, the Wall Street investors have issued their expectations to be set around the $30.74 billion mark. Meta is currently recovering from a catastrophic bad financial performance in the 4th quarter of 2021. The company also admitted that Apple iOS privacy settings took a major market share out of Meta by dominating the ad revenues.

Facebook algorithms have been a constant source of controversy since the publication of Facebook Papers. Meta, the parent company of Facebook, shared that introducing a dignified data tracking setup like ATT that provides the users full control over their cookies can cost the fintech giant around $10 billion in 2022.

On the other hand, Meta is also facing pressure to remain relevant with new social media applications like TikTok and Snapchat. It is interesting to note that Apple Inc.’s research publication recently revealed that the new algorithm changes had not created more ad revenues for ATT or Apple. Meta shares cascaded 41% in 90 days. At present, Zuckerburg is pouring all his energy into transforming the platform from conventional social media networks to his new vision of a Web3-based Metaverse.