Shares of Facebook owner Meta Platforms fell more than 20% after the company announced it missed market expectations for fourth-quarter earnings.
The company’s quarterly profit was US$10.3 billion, down 8%. Its operating income was US$12.5 billion, down slightly from a year earlier.
Earnings per share were $3.67 versus $3.84 expected.
The company is also forecasting a poor first quarter in 2022. The market was looking for revenue of $30 billion, but the company now expects a result of between $27 billion and $29 billion.
Meta also made some moves to blame Apple’s strict privacy changes to its operating system, which it said made it harder to target and measure ads on Facebook and Instagram. He also cited supply chain disruption as another reason for his disappointing results.
That didn’t stop Menlo Park from rotating. According to Mark Zuckerberg, CEO and Founder of Meta, “We had a strong quarter as people turned to our products to stay connected and businesses continued to use our services to grow.
“I am encouraged by the progress we have made over the past year in a number of important growth areas such as Reels, Commerce and Virtual Reality, and we will continue to invest in these key priorities and others as they arise. 2022 as we work to build the metaverse,” he added.
The company’s Reality Labs division, which makes VR goggles, smart glasses and gadgets, lost more than US$10 billion in 2021. According to the New York Timesthe $10 billion figure is nearly five times what it cost the company to buy Oculus in 2014 and ten times what it paid for Instagram nearly 10 years ago.
Meta Platform’s overall annual results show a 37% increase in total revenue to $118 billion and a 43% growth in revenue to $46.7 billion.