Facebook founder Mark Zuckerberg made a big splash in October 2021 when he announced that his company would transition to a new stage. It would rebrand as Meta Platforms (NASDAQ:FB) going forward, and focus on a new mission. The company would focus on “building the metaverse”, a network of 3D virtual worlds that aim to bolster digital social connection.
Shares of Meta have struggled to start 2022. The stock is down 38% as of early afternoon trading on March 21. The company had a positive start to 2022 as it gorged on increased advertising revenue coming out of the COVID-19 pandemic. However, the bad news came fast and furious in February.
Meta unveiled its fourth quarter and full year 2021 earnings on February 3, 2022. The company missed its forecast to close out the year. It reported diluted earnings per share of $3.67 which fell short of analyst consensus estimates and fell 5% from the previous year. However, revenue was still up 20% from the fourth quarter of 2020.
Zuckerberg noted that Meta would be focused one executing its strategic shift in 2022. It expects revenue between $27 and $29 billion for the full year. This is still short of analyst expectations. Meta has continued to invest in Reels, which it hopes can eventually pose a threat to TikTok.
Shares of Meta last had a favourable price-to-earnings ratio of 15. The company spent most of February in technically oversold territory. It is still not too late to buy-the-dip in Meta today.
