Dubai, United Arab Emirates – There once was a website for Harvard University students named Facemash, where users can decide which person is the more attractive out of two based on their pictures. This website expanded to other universities, and defying all the odds, added features over the years including the ability to share content, comment, play games and much more.
This is the story of Facebook, the world’s most used social media network with over 2.93 billion monthly active users. The website which was created in a college dorm room by Mark Zuckerberg has evolved into the world’s 8th largest company by market capitalization, currently worth more than $560 billion.
It changed its name to Meta Platforms in late 2021 as a nod to the immersive next-generation virtual reality technology known as the metaverse. While all this looks great, Meta has been hit hard in 2022, losing over 40% of its value since the start of the year due to many adverse factors which weighed down on the metaverse-focused chief, impeding its progress of capitalizing on the technology of the next generation.
In the 2021 fourth fiscal quarter, the firm’s earnings per share as well as its revenue were under forecasts by analysts’ majority. But what was truly a catastrophe was that Facebook’s global active users declined for the first time in history, dropping by almost half a million users in the quarter. As a result, the market capitalization of Meta has been slashed by over $250 billion.
It has then brought all the attention of the “meta world” to its next quarterly results for Q1 2022:
· Earnings per share: $2.72 vs. $2.56 expected
· Revenue: $27.91 billion vs. $28.2 billion expected
· Daily active users: 1.96 billion vs. 1.95 billion expected
· Average revenue per user: $9.54 vs. $9.50 expected
The technology pioneer has beat Wall Street expectations in most metrics, surging its stock by 18% on Wednesday the 28th of April. Investors appear to have regained their confidence in the Meta stock, with the average analyst price target of $312.
The company also has exciting future endeavors. Learn more in our study of TOP 5 Social Media Companies.
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