Meta (Facebook) sinks on Wall Street. The company of Mark Zuckerberg it loses 25%, and burns 80 billion in capitalization, after the disappointing third quarter figures were released yesterday. Between July and September the group halved its profits earning 4.39 billion dollars against 9.1 billion in the same period last year. The revenues, down 4% to 27.71 billion although above analysts’ expectations. What worries investors is that the metaverse project struggles to take feet. Zuckerberg has staked many cards on this development and the project is absorbing increasing resources. This year the group expects to budget costs of between 85 and 87 billion dollars which in 2023 should rise to 96 billion and then to 101 billion in 2024. The number one of the group he asked for “patience”, attitude not very widespread among investors. Since the beginning of the year, the title Meta lost 70%.
More generally, it is a disappointing quarterly season for the giants of the web, reflecting a “break” compared to the past with almost constant growth in revenues and profits. Last Monday Alphabet, the holding company to which it belongs Google, announced below expectations for the third quarter. earnings per share were $ 1.06, less than the market’s expected $ 1.25. Revenues rose 6% to 69.08 billion, but even this case below the expectations of analysts who bet on 70.76 billion. Microsoft closed the quarter with rising revenues but profits down 13% to 17.6 billion. Generally what moves the shares on the stock market is not so much the goodness or otherwise of the results (already incorporated in the prices of the stock) but the difference, positive or negative, compared to forecasts. Today the quarterly reports of Apple and Amazon.