Meta Platforms (FB) Stock Plunges 20% on Q4 EPS Miss and Worse Than Expected Outlook

Meta Platforms (NASDAQ: FB) shares dropped more than 20% after-hours following the company’s Q4 results, with EPS of $3.67 coming in worse than the consensus estimate of $3.84. Revenue was $33.67 billion, compared to the Street estimate of $33.38 billion.

Daily active people (DAP) for Family of Apps (FoA), which includes Facebook, Instagram, Messenger, WhatsApp and other services, was 2.82 billion on average for December 2021, representing an 8% growth year-over-year. Family monthly active people (MAP) was 3.59 billion as of December 31, 2021, representing a 9% year-over-year growth.

The company repurchased $19.18 billion and $44.81 billion of its Class A common stock in Q4 and 2021, respectively, and has $38.79 billion available and authorized for repurchases as of December 31, 2021.

The company expects Q1/2022 revenue in the range of $27-29 billion (3-11% growth year-over-year), which is lower than the consensus estimate of $30.1 billion and is expected to be impacted by headwinds to both impression and price growth.

According to Mark Zuckerberg, Meta founder and CEO, the company made encouraging progress in 2021 in a number of important growth areas like Reels, commerce, and virtual reality, and continues to invest in these and other key priorities this year as it works towards building the metaverse.

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