Q4 Metaplatform Earnings Drop 55%, Hit by Cost-Cutting Measures
Mark Zuckerberg’s Meta Platforms reported a 55% drop in quarterly earnings on Wednesday, hit by a heavy charge from cost-cutting measures such as layoffs, office closures and an overhaul of its data center strategy. data.
Net income for the fourth quarter ended Dec. 31 fell to $4.65 billion, or $1.76 per share, from $10.29 billion, or $3.67 per share, a year earlier. reported the parent company of Instagram and Facebook.
The digital advertising giant faced a brutal 2022 as companies cut marketing spend due to economic worries, while rivals like TikTok snagged young users and privacy updates Apple continued to challenge the company to place targeted ads.
However, Meta expects first-quarter revenue to beat Wall Street estimates, signaling a rebound in demand for digital ads after months of weak sales.
Zuckerberg’s firm expects revenue between $26 billion and $28.5 billion, compared to average analyst estimates of $27.14 billion, according to IBES data from Refinitiv.
Meta forecasts indicate that the advertising market could recover as companies increase their marketing budgets, after a long pause due to macroeconomic uncertainties.
Meta shares, which have lost almost two-thirds of their value in 2022, are up around 10% in extended trading.
Q4 Metaplatform Earnings Drop 55%, Hit by Cost-Cutting Measures
