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Facebook Plunged Over 22% as Failed Earnings Report Forced Investors to Dump Shares

Shares of Meta plunged by 22.01% on Thursday after the third quarter (Q3) earnings report showed net income declined by 52% from $9.194 billion recorded in Q3 2021 to $4.395 billion.

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Shares of Meta, the owner of Facebook, Instagram, WhatsApp, and more, plunged by 22.01% on Thursday after the third quarter (Q3) earnings report showed net income declined by 52% from $9.194 billion recorded in Q3 2021 to $4.395 billion.

Revenue for the period dropped 4% to $27.714 billion, down from $29.010 billion filed in Q3 of 2021. Costs and expenses grew by 19% to $22.050 billion.

Similarly, income from operations plunged to $5.664 billion, a 46% decline when compared to $10.423 billion achieved in the corresponding period of 2021.

The company’s share dipped by 22.01%, or $28.57 to $101.25 a unit despite family Daily Active People (DAP) growing by 4% year-on-year to 2.93 billion. Also, the metric for family Monthly Active People (MAP) stood at 3.71 billion, a 4% increase from a year ago.

Facebook Daily Active Users (DAUs) continued to expand in the quarter under review, growing by 3% year-on-year to 1.98 billion on average while Monthly Active Users (MAUs) inched higher by 2% year-on-year to 2.96 billion.

The earnings report obtained by Investors King showed ad impressions on the world’s largest social media company increased by 17% year-on-year. Suggesting that traffic is not the issue but spending by advertisers.

This was validated by the average price charged per ad which rose by 18% year-on-year.

As explained by Mark Zuckerberg, Meta founder and chief executive, during the earnings call, Facebook fundamentals remained solid but its revenue will continue to struggle in the near term given global uncertainty and the dropped in spending by top advertisers.

However, shareholders continue to doubt Zuckerberg’s over $10 billion investment in the metaverse would worth it in the long run, especially with how unproven that niche is presently.

“I appreciate the patience and I think that those who are patient and invest with us will end up being rewarded,” he said, arguing that the company was doing “leading work” on the metaverse that would be “of historical importance”.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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TikTok Faces Existential Threat as US House Votes Overwhelmingly to Ban Unless Sold

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The US House of Representatives has voted overwhelmingly to ban TikTok unless its Chinese owner, ByteDance Ltd., sells the video-sharing app.

The measure, passed by a vote of 352 to 65, marks a significant escalation in the ongoing scrutiny of TikTok, which has come under fire over concerns about national security and data privacy.

The bill, if enacted into law, would require TikTok to divest its US operations within 180 days or face a ban from US app stores, including those run by Apple and Google.

This move represents the most serious challenge yet to TikTok, which boasts a massive user base of 170 million Americans but has been criticized by some lawmakers as a potential national-security threat due to its Chinese ownership.

President Joe Biden has signaled his support for the legislation, stating that he would sign it into law if it passes the Senate.

However, the bill’s fate in the Senate remains uncertain, with Majority Leader Chuck Schumer yet to endorse it and some members, including Republican Rand Paul, expressing opposition.

TikTok has vehemently opposed the proposed ban, arguing that it would violate the First Amendment and have a detrimental impact on the economy, small businesses, and the millions of Americans who use the platform.

The company has also faced accusations of being a tool for Chinese propaganda, although it has consistently denied sharing user data with the Chinese government.

The House passage of the bill comes just days after its introduction, reflecting growing bipartisan concern over TikTok’s influence and potential risks to national security.

The swift action underscores the urgency with which lawmakers are seeking to address these concerns and highlights the mounting pressure on TikTok to address them or face significant consequences.

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Reddit Eyes $748 Million in Landmark Initial Public Offering

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Reddit Inc. is setting its sights on a colossal initial public offering (IPO) aiming to raise $748 million.

This ambitious move represents one of the most significant IPOs of the year as Reddit looks to capitalize on its vast user base and unique market position.

The social media giant, beloved for its diverse forums and vibrant community discussions, plans to offer 22 million shares at a price range of $31 to $34 each, according to sources familiar with the matter.

If successful, this would catapult Reddit’s valuation to as high as $6.5 billion, solidifying its status as a major player in the digital landscape.

What sets Reddit’s IPO apart is its innovative approach to shareholder inclusion. The company intends to reserve approximately 1.76 million shares exclusively for its dedicated users and moderators who created accounts before January 1st.

This groundbreaking move not only fosters a sense of community ownership but also underscores Reddit’s commitment to its grassroots origins.

Despite its meteoric rise, Reddit has faced its fair share of challenges.

From navigating volatile market conditions to addressing user concerns over content moderation and profitability, the company has weathered storms while staying true to its core values.

With heavyweight investment banks like Morgan Stanley, Goldman Sachs, JPMorgan Chase, and Bank of America spearheading the IPO, anticipation surrounding Reddit’s market debut is palpable.

As the company prepares to trade under the symbol RDDT on the New York Stock Exchange, all eyes are on Reddit, poised to witness history in the making.

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Elon Musk Envisions X as the Future of Your Financial Life

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Tech visionary Elon Musk unveiled his vision for X, aiming to transform it into the epicenter of people’s financial worlds by the end of 2024.

Musk’s plan transcends mere payment solutions, targeting nothing short of the complete financial ecosystem, including money and securities. “You won’t need a bank account,” he affirmed.

X, led by CEO Linda Yaccarino, sees this as an ambitious opportunity that could reshape the financial landscape as we know it.

Musk expressed his unwavering commitment to the cause, stating, “It would blow my mind if we don’t have that rolled out by the end of next year.”

This ambition traces back to Musk’s dot-com-era online bank, X.com, which later evolved into PayPal. Musk aims to take a page from his earlier playbook, hoping to outshine PayPal with a more comprehensive approach.

The platform’s offerings are set to include high-yield money market accounts, debit cards, checks, and loan services. Musk’s endgame? An ecosystem that empowers users to send money worldwide instantly and in real-time.

However, this transformation is not without its challenges. Elon Musk must convince users of the necessity of such an all-encompassing platform while gaining their trust with their financial lives.

The vision of X as an “everything app” resonates with the rise of super apps like WeChat in China, which provide users with access to a myriad of services, from shopping to transportation.

As X positions itself to revolutionize the financial industry, Musk’s audacious endeavor promises to change the way we handle money, potentially eliminating the need for traditional banking as we know it.

The world watches with bated breath to see if Musk’s bold vision will become a reality.

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