Up goes Snap, and Down goes Zuck.
For the first time in its history, Snap made a profit. Meanwhile, Mark Zuckerberg, now known as Meta, the CEO of Facebook, lost $31 billion.
The world is changing, and the tables have turned dramatically. Snap surprised behemoth-sized rival Meta, formerly known as Facebook, by earning its first profit as a public business on Thursday. Meta, on the other side, had the greatest stock market meltdown in history, losing $251 billion in one day.
On a day overshadowed by Meta’s deep dive, Snap’s fantastic fortunes were an unexpected bright light. Despite its little profit—$23 million in the fourth quarter of 2021, compared to $4.1 billion in revenue for the year—the results were significant. The corporation also reported positive user growth, with 319 million daily active users in the fourth quarter of 2021, up 54 million from the previous year.
On Snap’s call with analysts on Thursday, chief financial officer Derek Anderson said the company’s direct response advertising business had recovered “quicker than we anticipated” from modifications to Apple’s privacy feature, App Tracking Transparency, or ATT.
In prepared remarks, Snap CEO Evan Spiegal stated, “We built our community, expanded our product offerings, and proven the power of our augmented reality platform.” “In 2021, we encountered new obstacles, but we delivered good results.”
Snap’s stock jumped 52% in after-hours trading.
The same cannot be said for Meta, whose stock has dropped by 26%. For the first time in its existence, the firm recorded a drop in user growth, dropping from 1.93 billion daily active users in the third quarter of 2021 to 1.929 million in the fourth quarter, a loss of around a million people. As if that weren’t bad enough, it missed fourth-quarter earnings projections and released a revenue forecast for the first quarter of 2022 that was lower than expected. Apple’s ATT feature is also expected to cost Meta $10 billion in income this year.
According to Bloomberg, Meta’s difficulties had a direct influence on CEO Mark Zuckerberg’s personal fortune, which lost $31 billion in a single day. According to the outlet, the loss knocked Zuckerberg out of the top ten wealthiest persons in the world for the first time since 2015. Given that the Meta CEO still has a net worth of $92 billion, pardon me if I don’t feel sorry for him.
According to Bloomberg, Zuckerberg said the stock decline was due to the company’s disappointing revenue projection in a virtual company-wide meeting on Thursday. Employees were informed by Zuckerberg that it was critical to focus on expanding Instagram Reels, the company’s short-form video product.
During the meeting, the Meta CEO’s eyes were red and crying. He claimed it wasn’t because of the stock market crisis, but because he had a scratched cornea. Who knows, maybe it was a combination of the two.