Meta shares slump

Chris Pash
By Chris Pash | 4 February 2022
 
Credit: Kurt Anderson via Unsplash

Shares in Meta, formerly Facebook, fell hard after the social media platform said its business was being dragged down by Apple privacy changes and by competition.

The shares fell by a quarter in the US. A short time ago, they were down 26% to $US237.76.

More than $200 billion was wiped from Meta's market capitalisation.

Apple's iOS privacy updates have impacted Meta's third quarter results with the social media giant expecting it to last at least into the next quarter.

The company reported advertising revenue of US$28.3 billion for the quarter, up 33% year-on-year. Total revenue was US$29 billion, up 35%, slightly missing expectations.

Meta expects fourth quarter total revenue to be in a range of US$31.5 billion to US$34 billion, citing the continued impact from Apple’s iOS privacy updates which require consent from users to track their iPhone activity for advertising.

“Our outlook reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple's iOS 14 changes, and macroeconomic and COVID-related factors,” the company said in its earnings update.

meta shares feb 3 2022

 

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