Meta earnings preview: Here's what to expect - Yahoo Finance

1 year ago 42

Alexandra Garfinkle

Meta's (META) acceptable to study its Q4 2022 net contiguous aft the bell, capping disconnected a pugnacious twelvemonth for the Facebook parent.

Here's what analysts are expecting to spot from Meta arsenic it ties up its 2022:

Q4 Revenue – $31.65 cardinal expected

Advertising Revenue – $30.86 cardinal expected

Adjusted Earnings Per Share (EPS) – $2.26 expected

Facebook Daily Active Users (DAUs) – 1.98 cardinal expected

Family of Apps Daily Active Users (DAUs) – 2.92 cardinal expected

Reality Labs Operating Loss – -$3.99 cardinal expected

Meta, which besides owns Instagram and WhatsApp, is coming disconnected an exceptionally hard year. In 2022, the company's banal declined astir 63% arsenic the societal media elephantine battled increasing contention from TikTok, precocious inflation, and a muted integer advertizing market.

Slowed advertisement spending is going to beryllium a peculiar symptom point, arsenic "digital advertizing remains nether unit with immoderate signs of stabilization," Wedbush expert Dan Ives wrote successful a Jan. 29 enactment to investors. This week,

Rival Snap (SNAP) reported net yesterday, and the read-through doesn't look large for Meta. Snap barely met Wall Street's expectations connected gross and DAUs and hinted astatine a apt gross diminution successful Q1 2023. Snap's banal plunged astir 13% pursuing the report.

Meta Platforms Chief Executive Mark Zuckerberg leaves national  tribunal  aft  attending the Facebook genitor  company's defence  of its acquisition of virtual world  app developer Within Inc., successful  San Jose, California, U.S. December 20, 2022.  REUTERS/Laure Andrillon

Meta Platforms Chief Executive Mark Zuckerberg leaves national tribunal aft attending the Facebook genitor company's defence of its acquisition of virtual world app developer Within Inc., successful San Jose, California, U.S. December 20, 2022. REUTERS/Laure Andrillon

Meta's got a batch of moving parts

Meta, rather simply, has a batch going connected close now. For one, the institution changed its sanction successful 2021 from Facebook to signify its committedness to the metaverse, an effort that's proven costly and progressively hard to warrant arsenic the broader macro economy's taken a dive.

Additionally, the institution laid disconnected 11,000 workers successful November and much occupation jobs are reportedly connected the array adjacent now. Moreover, the company's C-suite re-shuffled substantially done past year, with longtime COO Sheryl Sandberg officially leaving the institution successful September.

The institution is simultaneously successful the midst of defending its projected acquisition of VR developer Within, which makes fittingness app Supernatural, successful an antitrust suit brought by the Federal Trade Commission (FTC) successful July. The $440 cardinal woody was announced successful October 2021, conscionable a time aft the company's sanction change.

Though acquisitions person fueled Meta for years – Instagram and WhatsApp main among them – the company's successful a caller epoch successful which getting those big-ticket deals done is going to beryllium hard. Meta CTO Andrew Bosworth said of Within that "if this woody doesn’t adjacent successful a timely matter, we’ll astir apt conscionable locomotion away.”

Allie Garfinkle is simply a Senior Tech Reporter astatine Yahoo Finance. Follow her connected Twitter astatine @agarfinks and connected LinkedIn.

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