Facebook Shares Dips More Than 20% While Staying On Weak Earnings!

Facebook shares tumbled more than 20% in extended trading on Wednesday after the company reported disappointing earnings, gave weak guidance and said user growth has stagnated.

Here are the results:

Earnings per share: $3.67 vs $3.84 expected, according to a Refinitiv survey of analysts

Revenue: $33.67 billion vs $33.4 billion expected, according to Refinitiv

Facebook also missed estimates with user numbers.

Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected by analysts, according to StreetAccount

Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected by analysts, according to StreetAccount

The average revenue per user (ARPU): $11.57 versus $11.38 expected by analysts, according to Street Account.

The company, which was recently renamed Meta, issued disappointing Q1 guidance in addition to falling short of its Q4 results and user count.

Daily Active Users (DAUs) on Facebook declined slightly in the fourth quarter compared to the previous quarter and thus marked the first recorded quarterly decline in DAU.

Facebook said first-quarter revenue will be $27 billion to $29 billion, while analysts were expecting $30.15 billion in revenue, according to Refinitiv.

That would mean annual growth of 3% to 11%. Facebook said it was hit by a combination of factors, including Apple's iOS privacy changes and macroeconomic challenges.

He blamed inflation and supply in part for the lower-than-expected growth. Chain issues impacting advertiser budgets.

There's also a shift toward products that aren't generating as much revenue as your primary news source.

For example, people are spending more time on your Reels videos.

"On the page of the impressions, we hope that the winch is continued against increasing the competitive persons for the time of people.

And a change in commitment to our applications on video surfaces such as roles approved to the tariffs that are low, 3 billion.

For the fourth quarter, Facebook is proving to be an outlier among the big tech companies. The results come a day after Alphabet beat estimates and sent shares higher on Wednesday.

Apple and Microsoft also beat estimates for profit and revenue. Despite the tumble in tech stocks in January, industry giants other than Netflix have released encouraging earnings reports.

While reminding investors of the power of their dominant companies even in a challenging macro environment. At the close on Wednesday, Facebook shares are down about 4% this year.