CEO Weekly
No Result
View All Result
CEO Weekly
No Result
View All Result
Menu
  • Business
  • News
  • Politics
  • Leadership
  • Entertainment
  • Lifestyle
  • Contact Us
Menu
  • Business
  • News
  • Politics
  • Leadership
  • Entertainment
  • Lifestyle
  • Contact Us
Menu
  • Business
  • News
  • Politics
  • Leadership
  • Entertainment
  • Lifestyle
  • Contact Us
CEO Weekly
Search
Close this search box.
Home News

Meta Shares Plunge Following Reports of Unusual Profit Drop

Joseph Brown by Joseph Brown
February 28, 2022
in News
92,188
Meta Shares Plunge Following Reports of Unusual Profit Drop
Share on Facebook

Photo by Maxim Hopman 

On Wednesday, Meta (formerly Facebook) ruffled investors by reporting an unusual profit plunge. It comes as a result of the giant’s exorbitant investment on its vision for the metaverse, a virtual reality platform, while facing advertising problems on its known services as well.

The tech giant reported an approximately $10.3 billion net income in the last three months of 2021, showing an 8% plunge from a similar period from the year previously and under the estimation of Wall Street analysts.

The profit plunge comes as an effect of Meta’s exorbitant spending into the VR and AR technologies it hopes will aid in the development of the metaverse. Metaverse, thus far, is still a conceptual immersive version of the internet.

Mark Zuckerberg, CEO at Meta, described this new technology as the future of the company. Simultaneously, Meta is confronting an alteration to Apple’s iOS that has deeply challenged its internal advertising business.

Meta’s stocks plummeted at least 23% following the announcement.

For the year, Meta has disclosed an over $10 billion loss in Reality Labs, their AR and VR unit. This is the first ever report of the unit’s financials. Earlier, CFO Dave Wehner has foretold those investments in Reality Labs would decline the firm’s general operating profit in 2021 by approximately $10 billion. During the year, the unit earned only $2.3 billion in revenue.

In an emailed commentary, Mindshare Worldwide’s global chief digital officer Tom Johnson said, “Investors will look at these numbers closely as a first indicator of how far off the Metaverse is from being a profitable reality.”

The company revealed a stagnant growth in its internal advertising business, which comprises about 99.5% of its total revenue. Year-over-year, advertising revenue increased 20%—it’s snail-like growth for the year—to $32.6 billion, following the iOS alteration, making targeted advertising harder.

The tech giant fell short of increasing its daily or monthly active consumer bases on Facebook from the third quarter, a rare slip for Meta.

Tags: Featured

Opinions expressed by CEO Weekly contributors are their own.
Previous Post

Nima Yamini Helping Young People Carve Successful Financial Paths through His Company, PN & Friends

Next Post

Entrepreneur Adam Graham’s Just Fix-d the property maintenance sector.

Joseph Brown

Joseph Brown

As a business analyst, Joseph has a proven track record of driving growth and profitability for companies in various industries. With a keen understanding of market trends and consumer behavior, he has successfully implemented strategic initiatives that have resulted in significant revenue increases. Joseph's expertise in data analysis and market research has been instrumental in helping businesses make informed decisions and stay ahead of the competition.

Next Post
Entrepreneur Adam Graham’s Just Fix-d the property maintenance sector.

Entrepreneur Adam Graham’s Just Fix-d the property maintenance sector.

Recent News

Teri Donelson

Teri Donelson: Empowering Women to Pursue Purpose and Prosper

June 2, 2023
Unlocking the Path to Success: High School Internships in the World of Business

Unlocking the Path to Success: High School Internships in the World of Business

June 2, 2023
Business Mogul Armen Mardirousi Embarks on New Leadership Journey as CEO of American Global Freights

Business Mogul Armen Mardirousi Embarks on New Leadership Journey as CEO of American Global Freights

June 2, 2023
“Robert DeFalco Realty Stands Out as Top Firm on the East Coast”

“Robert DeFalco Realty Stands Out as Top Firm on the East Coast”

June 2, 2023
B.O.S.S. Women Network

How B.O.S.S. Women Network is Creating Powerful Leaders and Lifting Other Women Up

June 1, 2023
Published Agency: Maximizing Exposure with the Power of PR

Published Agency: Maximizing Exposure with the Power of PR

June 1, 2023
The Power of Mind Mapping, Mapping Your Way to Excellence with John Diggs

The Power of Mind Mapping, Mapping Your Way to Excellence with John Diggs

June 1, 2023
Revolutionizing the Cleaning Industry: How Remote Cleaning Workers Is Paving the Way for Remote Cleaning Businesses

Revolutionizing the Cleaning Industry: How Remote Cleaning Workers Is Paving the Way for Remote Cleaning Businesses

June 1, 2023
Jeff Lackey

Jeff Lackey and JKL Advisors Lead the Way in Developing a People-First Culture for Business Success

June 1, 2023
From Vision to Reality: Ihor Kochura and Crystalia Glass LLC Crafting Elegant Metal Partitions and Breathtaking Glass Roofs in the Loft Style

From Vision to Reality: Ihor Kochura and Crystalia Glass LLC Crafting Elegant Metal Partitions and Breathtaking Glass Roofs in the Loft Style

June 1, 2023
Trailblazer Founders

Deepti Pahwa’s Trailblazer Founders: A Game-Changing Guide to Entrepreneurial Success

June 1, 2023
Photo by Maxim Hopman  On Wednesday, Meta (formerly Facebook) ruffled investors by reporting an unusual profit plunge. It comes as a result of the giant’s exorbitant investment on its vision for the metaverse, a virtual reality platform, while facing advertising problems on its known services as well. The tech giant reported an approximately $10.3 billion net income in the last three months of 2021, showing an 8% plunge from a similar period from the year previously and under the estimation of Wall Street analysts. The profit plunge comes as an effect of Meta’s exorbitant spending into the VR and AR technologies it hopes will aid in the development of the metaverse. Metaverse, thus far, is still a conceptual immersive version of the internet. Mark Zuckerberg, CEO at Meta, described this new technology as the future of the company. Simultaneously, Meta is confronting an alteration to Apple’s iOS that has deeply challenged its internal advertising business. Meta’s stocks plummeted at least 23% following the announcement. For the year, Meta has disclosed an over $10 billion loss in Reality Labs, their AR and VR unit. This is the first ever report of the unit’s financials. Earlier, CFO Dave Wehner has foretold those investments in Reality Labs would decline the firm’s general operating profit in 2021 by approximately $10 billion. During the year, the unit earned only $2.3 billion in revenue. In an emailed commentary, Mindshare Worldwide’s global chief digital officer Tom Johnson said, “Investors will look at these numbers closely as a first indicator of how far off the Metaverse is from being a profitable reality.” The company revealed a stagnant growth in its internal advertising business, which comprises about 99.5% of its total revenue. Year-over-year, advertising revenue increased 20%—it’s snail-like growth for the year—to $32.6 billion, following the iOS alteration, making targeted advertising harder. The tech giant fell short of increasing its daily or monthly active consumer bases on Facebook from the third quarter, a rare slip for Meta.
No Result
View All Result
  • Business
  • News
  • Politics
  • Leadership
  • Entertainment
  • Lifestyle
  • Contact Us

© 2022 CEO Weekly. All Rights Reserved

Menu
  • Business
  • News
  • Politics
  • Leadership
  • Entertainment
  • Lifestyle
Menu
  • Contact Us
  • Privacy Policy
  • Terms and Conditions

© 2023 CEO Weekly. All Rights Reserved

  • Artist Weekly
  • Atlanta Wire
  • California Gazette
  • California Observer
  • CEO Weekly
  • Celebrity News
  • Chicago Journal
  • Coin Week
  • Economic Insider
  • Entertainment Monthly News
  • Entertainment Post
  • Famous Times
  • Influencer Daily
  • LA Wire
  • Market Daily
  • Meta Digest
  • Miami Wire
  • Music Observer
  • Net Worth
  • NY Weekly
  • NY Wire
  • Portland News
  • San Francisco Post
  • Texas Today
  • US Business News
  • US Insider
  • US Reporter
  • Voyage NY

© 2023 Los Angeles Wire. All Rights Reserved

  • Artist Weekly
  • Atlanta Wire
  • California Gazette
  • California Observer
  • CEO Weekly
  • Celebrity News
  • Chicago Journal
  • Coin Week
  • Economic Insider
  • Entertainment Monthly News
  • Entertainment Post
  • Famous Times
  • Influencer Daily
  • LA Wire
  • Market Daily
  • Meta Digest
  • Miami Wire
  • Music Observer
  • Net Worth
  • NY Weekly
  • NY Wire
  • Portland News
  • San Francisco Post
  • Texas Today
  • US Business News
  • US Insider
  • US Reporter
  • Voyage NY

© 2023 Los Angeles Wire.
All Rights Reserved

  • Artist Weekly
  • Atlanta Wire
  • California Gazette
  • California Observer
  • CEO Weekly
  • Celebrity News
  • Chicago Journal
  • Coin Week
  • Economic Insider
  • Entertainment Monthly News
  • Entertainment Post
  • Famous Times
  • Influencer Daily
  • LA Wire
  • Market Daily
  • Meta Digest
  • Miami Wire
  • Music Observer
  • Net Worth
  • NY Weekly
  • NY Wire
  • Portland News
  • San Francisco Post
  • Texas Today
  • US Business News
  • US Insider
  • US Reporter
  • Voyage NY