Facebook Loses Daily Active Users

Plus, Spotify's growth slows down.

Steven Lerner
Steven Lerner

Today is Thursday, February 3, 2022.

New to this newsletter? Sign up here.

Facebook Loses Daily Active Users

Shares of Facebook’s parent company Meta Platforms (Nasdaq: FB) fell 22.89% in after-hours trading on Wednesday after the technology giant posted negative earnings.

Financials: Meta reported earnings per share of $3.67 and revenue of $33.67 billion; both were slightly below estimates.

Falling Short: Daily active users hit 1.93 billion and monthly active users reached 2.91 billion; both were below estimates. This is also the first time the company has lost active users. And the company’s guidance of $27 billion to $29 billion in revenue for the first quarter was low.

Internal Problems: Reality Labs, Meta’s virtual and augmented reality segment, lost $3.3 billion in the quarter. The company also anticipates higher expenses due to increased technical and talent costs.

External Problems: Meta said that changes involving Apple (Nasdaq: AAPL) iOS will impact ad targeting and measurement. Likewise, macroeconomic challenges such as cost inflation and supply chain disruptions will impact budgets for advertisers on Facebook.

Quote: “We expect continued headwinds from both increased competition for people's time and a shift of engagement within our apps towards video surfaces.” - Meta’s earnings release.

Final Thoughts: With such a big drop in price, buying Facebook stock could be seen as a long-term bet. However, the company is currently struggling.


Notable Earnings Today: Ford Motor (NYSE: F), Amazon (Nasdaq: AMZN), Snap (NYSE: SNAP), Pinterest (NYSE: PINS), Nokia (NYSE: NOK), Penn National Gaming (Nasdaq: PENN), Merck (NYSE: MRK), Activision Blizzard (Nasdaq: ATVI), ConocoPhillips (NYSE: COP), Eli Lilly (NYSE: LLY), Honeywell International (Nasdaq: HON), Unity Software (NYSE: U), Estee Lauder (NYSE: EL), Cigna (NYSE: CI), Royal Dutch Shell (NYSE: RDS.A), Fortinet (Nasdaq: FTNT), Skyworks Solutions (Nasdaq: SWKS), Skechers USA (NYSE: SKX), Vista Outdoor (NYSE: VSTO), GoPro (Nasdaq: GPRO), ABB (NYSE: ABB), Abiomed (Nasdaq: ABMD), Allstate (NYSE: ALL), Aptiv (NYSE: APTV), Becton Dickinson (NYSE: BDX), Biogen (Nasdaq: BIIB), Boyd Gaming (NYSE: BYD), Cantaloupe (Nasdaq: CTLP), Cardinal Health (NYSE: CAH), Clorox (NYSE: CLX), Corteva (NYSE: CTVA), Cummins (NYSE: CMI), Deckers Outdoor (NYSE: DECK), Hain Celestial Group (Nasdaq: HAIN), Hanesbrands (NYSE: HBI), Hartford Financial Services Group (HIG), Hershey (NYSE: HSY), Intercontinental Exchange (NYSE: ICE), Lazard (NYSE: LAZ), Lions Gate Entertainment(NYSE: LGF.A), Lumentum Holdings (Nasdaq: LITE), Meritor (NYSE: MTOR), Microchip Technology (Nasdaq: MCHP), News Corp (Nasdaq: NWS), Nintendo (OTCMKTS: NTDOY), Nokia (NYSE: NOK), NortonLifeLock (Nasdaq: NLOK), Parker-Hannifin (NYSE: PH), Post Holdings (NYSE: POST), Prudential Financial (NYSE: PRU), Quest Diagnostics (NYSE: DGX), Ralph Lauren (NYSE: RL), Roche Holding (OTCMKTS: RHHBY), Suncor Energy (NYSE: SU), Synaptics (Nasdaq: SYNA), Takeda Pharmaceutical (NYSE: TAK), W.W. Grainger (NYSE: GWW), WestRock (NYSE: WRK), World Wrestling Entertainment (NYSE: WWE), Lightspeed (NYSE: LSPD), Suncor Energy (NYSE: SU).

Notable IPOs Today: Investcorp Europe Acquisition Corp I Class A Ordinary Shares (Nasdaq: IVCB), Murphy Canyon Acquisition Corp. Unit (Nasdaq: MURFU)

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Jobless claims (8:30 a.m. ET), Nonfarm productivity (8:30 a.m. ET), Markit services PMI (9:45 a.m. ET), ISM non-manufacturing employment (10:00 a.m. ET), ISM services index (10:00 a.m. ET).

Spotify Sunk by Slow Growth

Photo by Sara Kurfeß / Unsplash

Shares of Spotify (NYSE: SPOT) dropped 10.43% in after-hours trading on Wednesday after the audio streaming company posted mixed earnings.

Financials: Spotify reported a €0.21 loss per share and revenue of €2.69 billion; both were better than expected.

The Problem: The user guidance from the company was seen as weak. Spotify forecasted 418 million monthly active users and 183 million premium subscribers; both were lower than expected.

Final Thoughts: With shares of Spotify down 39% in the past year, some investors may want to buy the stock. The problem is that there is questionable growth for the foreseeable future.

2 Streaming Entertainment Stocks to Check Out

Here are two streaming entertainment stocks that had a bad 2021, but are aiming to go back up this year.

Rocking with Roku: Shares of Roku (Nasdaq: ROKU) are down 63% in the past year, but some investors are hopeful that the company can turn things around. Fox News International recently expanded its distribution on Roku.

Fun with FuboTV: Shares of FuboTV (NYSE: FUBO) are down 78% in the past year, but there are some positive signs. Last week, LightShed Partners upgraded the stock to neutral.

Final Thoughts: While both companies have their challenges cut out for them, the streaming market is robust and could support the growth of both businesses.

Lofty Goals: Alphabet eyes $2 trillion value after blowout results (Reuters)

Heist: More than $320 million stolen in latest apparent crypto hack (CNBC)

Banking Meets Crypto: Federal Reserve Bank of NY Lays Out Possible Stablecoin Scenarios (CoinDesk)

Falling: Qualcomm plunges despite Q1 earnings beat (Seeking Alpha)

Another One: After Raising Almost $30 Million, StartEngine Plans Another Self-Crowdfunding Round in 2022 (Crowdfund Insider)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.