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META MARKET MASSACRE: Facebook Stock Obliterated After Guidance Report

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Facebook’s decline may be inevitable, (as is the decline of any company on this ancient planet), but it’s doubtful that the social media megalith was prepared for the mess that they got themselves into this week.

Facebook, who made a shifty change in their public identity by adopting the name “Meta” some weeks ago, appeared to be attempting to shirk the criticisms heaped upon them over the years.  Not only were they accused of some heinous versions of data harvesting, but reports surrounding the mental health catastrophes of their unreleased “Instagram for Kids” platform had them squarely in the crosshairs of American culture.

The switch to “Meta” came soon after, with the company likely hoping to distance themselves from the bad press and all of the fiscal repercussions that come along with it.

No such luck, it seems, as evidenced by a massive jolt to the company’s stock on Thursday. 

The stock is on pace for its biggest one-day drop ever, ahead of the 19% plummet it saw in July 2018. Thursday’s drop is set to shave about $210 billion from its market cap, bringing it to about $689 billion.

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The company, which released earnings under its new name for the first time with a new reporting structure, missed earnings estimates for the fourth quarter at $3.67 vs. $3.84 analysts were expecting, according to Refinitiv. But it beat on revenue for the quarter, at $33.67 billion vs. $33.4 billion estimated.

Still, its revenue forecast of $27 billion to $29 billion for the first quarter fell below analyst expectations of $30.15 billion, according to Refinitiv.

Facebook suggested that Apple was to blame.

The company said Apple’s iPhone privacy changes, which impact its ad-targeting and measuring, would result in a $10 billion revenue hit this year. It also said macroeconomic challenges like inflation and supply chain disruptions, are weighing on advertiser budgets.

The social media platform’s “Metaverse” announcement was largely met with criticism as well, with many dryly reminiscing on online arenas such as “Second Life” that have been around for years.

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About the Author:
As a lifelong advocate for the dream promised us in the Constitution, Andrew West has spent his years authoring lush prose editorial dirges regarding America's fall from grace and her path back to prosperity. When West isn't railing against the offensive whims of the mainstream media or the ideological cruelty that is so rampant in the US, he spends his time seeking adventurous new food and fermented beverages, with the occasional round of golf peppered in.