Microsoft, Google, Facebook, three giants, miserable, miserable, miserable
Silicon Valley "earthquake".
This earthquake not only refers to the 5.1-magnitude earthquake with San Jose as the epicenter yesterday morning, but also the dismal performance and stock price performance of the three major giants: The US stock market is due to the poor performance of Silicon Valley technology giants in the third quarter and vibrated violently.
As of Wednesday local time, Microsoft, Google, and Meta have released the latest financial report data. The results show that the performance of the three giants continued to deteriorate compared with the second quarter, refreshing the lowest revenue growth rate and net profit in recent years respectively.
The group has been greatly reduced, and various sub-businesses have also shown varying degrees of weakness. After the after-hours financial report was released, the stock prices of Google and Microsoft plummeted by more than 6%, and Meta plummeted by nearly 20% again.
Previously, under the recent downturn in the U.S. stock market, many investors pinned their growth hopes on a few giants to boost confidence. But at present, it seems that, let alone saving the market, it is good not to frantically smash the market.
Meta "free fall" again: Net income plummeted by 52% year-on-year, and Metaverse business did not rise but fell. In fact, after the poor financial reports of Microsoft and Google were announced yesterday, Meta was already "scared" during today's trading session fell nearly 6%.
But when the results were really announced, everyone was shocked to realize that the 6% decline was just an appetizer. After the U.S. stock market closed today, Meta’s stock price plummeted by nearly 20%, with a cumulative decline of more than 25% throughout the day.
The market value in a single day once again evaporated by more than 80 billion US dollars. Meta's stock price plummeted after the market, the picture was taken from Robinhood So, what kind of information did Meta's financial report reveal this time, so that the market's confidence has plummeted again?
According to the financial report, Meta’s operating income in the third quarter was US$27.71 billion, slightly higher than analysts’ expectations. but down 4% year-on-year and continued to decline month-on-month; daily active users were 1.98 billion and monthly active users were 2.96 billion, which were flat and slightly higher than market expectations, respectively, 20 million.
While these two key operating metrics don't appear to be outrageously bad, the problem is that Meta's expenses are expanding significantly without revenue growth or even falling, resulting in continued declines in profit margins. Last quarter, Meta's costs and expenses were $22.1 billion, an increase of nearly 19% year over year.
As a result, its net income plummeted 52% from $9.19 billion a year ago and earnings per share of $3.22 to $4.4 billion this quarter, with earnings per share of only $1.64, far below market expectations. Meta's revenue and profit growth in the third quarter, the picture comes from Meta's financial report What's more, this trend of low revenue and high cost will continue to expand.
Meta said in the earnings report that it expects fourth-quarter revenue to be between $30 billion and $32.5 billion, the third straight quarter of declines, while also missing analysts’ estimates of $32.2 billion. But at the same time, total spending in 2023 will range from $96 billion to $1010