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Editorial by Fritz Jorgensen/iStock via Getty Images
For Facebook parent meta-platforms (Nasdaq:Meta), 2022 will go down in history as a year to be forgotten.
At the beginning of the year, Meta’s (Meta) market cap was just shy of $800B The company’s stock price ended 2021 at $336.35. But, as 2022 ends, Meta’s (Meta) shares ended the year at $120.34 each, and the company’s market cap was $320B. That’s a decline of more than 60% for those keeping scores at home.
Of course, hindsight is always 20-20. But the Seeking Alpha editors made some great predictions about the meta (Meta) per annum.
Build like Steve Miller
Alpha contributor and retail investor Eric Sprung looked for problems meta (Meta) and its investors are going to face in 2022.
In fact, Sprung didn’t wait until the calendar turned to 2022 to tell investors what he thought they should do with the meta (Meta) share. On December 21, 2021, Sprung borrowed a line from the Steve Miller Band and told Seeking Alpha readers, “It’s time to take the money and run.”
Sprung isn’t the only Seeking Alpha contributor.
Apple vulnerability
At the beginning of the year, Apple (AAPL) made privacy changes to its iOS operating system for mobile devices. In short, those changes gave iPhone and iPad users more control over how their devices are tracked across the sites they visit. That move had a negative effect on Meta (Meta) and other social media companies depend on advertising for a large portion of their revenue.
And in May, Contributor Gavin Barwell didn’t hold back In calling meta (Meta) “a failure” in the new ad-tech universe.
“The Meta’s weakness has always been its relationship with Apple,” Barwell said. “Apple’s iOS Privacy Changes Are an Iceberg That Could Sink the Titanic.”
Some evidence for that is in Meta (Meta) third quarter results are the company’s last results for 2022. meta (Meta) reported third-quarter total ad revenue of $27.2B. That amount is down nearly 4% from the same period in 2021, and down 3.3% from its second-quarter results.
Tech job cuts continue
Another sign of meta (Meta) the company said it would cut 11,000 jobs in November of a bad year A decline in advertising revenue. In May, I sat down with Seeking Alpha contributor and Practitioners Research analyst Alex Ponte Meta (Meta) employee growth rate has historically outpaced its revenue growth, such a measure has had a negative impact on the company’s profit margin.
Ponte, in his opinion, of Meta (Meta) total workforce and total growth “may become a precursor to underperformance for the year [earnings per share] Development.”
and in the third quarter of 2022, Meta (Meta) earnings per share of $1.64 – nearly 50% lower than the $3.22 per share it earned in the third quarter of 2021.
An embarrassing case of meta (Meta) recently gained attention, as the company agreed to pay $725M a Cambridge Analytica Scandal Class-Action Lawsuit.
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