Meta’s stock value jumped by more than 17% after the company released its final quarterly and full-year financial results for 2022.

February 02, 2023 By Raulf Hernes

(Image Credit Google)

Meta's final quarterly and full-year financial results for 2022 have been released, and the result is mixed for the former Facebook company. Meta's revenue slightly exceeded analysts' expectations, but the tech giant still hasn't fully recovered from the past 12 months. Meta’s stock value increased by more than 17% in the immediate aftermath of the results’ release, signaling renewed investor confidence. Nevertheless, there are plenty of factors to consider before jumping on the Meta bandwagon. The company exceeded Wall Street's revenue estimates by about 2%, thanks to Mark Zuckerberg's expensive attempt to pivot to virtual reality. Pourtant, Meta's 2022 revenues are still below those of 2021 by more than 1%, and the drop was even greater for the last quarter of 2022 compared to the same period in 2021, at more than 4%. In the run-up to 2022, Meta was as tough as most other major tech companies, but it saw a rise in both advertising revenue and revenue from its apps (Facebook, Instagram, Messenger, and WhatsApp), but it wasn't enough to cover the previous declines. Meta

Meta reported its first-ever revenue decline in company history in the second quarter of last year, with revenue declining by 1%. In the third quarter of last year, the company tripled that loss, making a profit still, but about 4% less than it did in the same quarter in 2021 (a trend the company has repeated this year). Between October 2021 and October 2022, Meta lost about $700 billion in market value, and the company announced over the summer that it would terminate agreements with news publishers and stop paying for news content on Facebook. "Zuck" then announced mass layoffs in November 2022, another first cut of more than 11,000 employees. Yet CEO Zuckerberg has also been pushing VR, even with little to show for his efforts thus far. Meta lost $9.4 billion in the money pit that has since become its "Reality Labs"—that is, the group of people behind the metaverse's apparent mess. [caption id="attachment_70394" align="alignright" width="1200"] meta

Image: Reuters[/caption] This growth in VR spending was perhaps even greater between last year’s third and fourth quarters, as the company lost $4.28 billion more on its Reality Labs in the final three months of 2022, compared with a loss of $3.67 billion in the previous three months. According to the report, Meta expects its total expenses to be lower than previously estimated in 2023, but did not say whether that would mean it will slash spending on the metaverse. Zuckerberg claimed in November that WhatsApp and Messenger would be the company’s future focus areas for raising profits, but Meh App Revenue suggests that this money machine hasn’t yet fully materialized. But, just to be fair, let's conclude with some good news for Meta: The money it had to pay/has to pay to its laid-off employees hasn't been very burdensome. After accounting for the savings from lower payroll, bonus, and other benefit costs, Meta stated in its quarterly press release that the severance and other personnel costs reported in the fourth quarter of 2022, were not regarded as significant.

By Raulf Hernes

If you ask me raulf means ALL ABOUT TECH!!

Meta’s stock value jumped by more than 17% after the company released its final quarterly and full-year financial results for 2022.

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