Facebook’s parent company Meta’s Q3 earnings report yesterday far missed expectations, and its stock price fell nearly 25% in a single day. This also led to a rare tearful apology from Wall Street madman Jim Cramer, who touted Meta’s stock price earlier as “there is no other way but to go up”. He claimed that he was wrong in believing in the management team, but he never thought that Zuckerberg would have nothing on the Metaverse. Spend your money with discipline.
Meta, the parent company of Facebook, which has invested in the Metaverse, announced its miserable third-quarter financial report yesterday (26) : revenue was reported at US$27.71 billion, which has declined for the second consecutive quarter. Earnings per share fell 33% to $1.64 on a quarterly basis of $4.4 billion. Metaverse and VR R&D unit Reality Labs posted a loss of $3.67 billion in Q3, extending the division’s loss to $9.44 billion this year.
The financial report was far worse than market expectations, and the fourth-quarter financial forecast was relatively pessimistic, which made META ‘s share price fall to 24.56% on Thursday, falling below 100 points to close at $97.94, the lowest point since 2016. It has tumbled more than 70% so far . Morgan Stanley downgraded Meta for the first time on Thursday, according to CNBC, and Cowen and KeyBanc also downgraded, both due to higher spending. Analysts at Morgan Stanley expect the company’s free cash flow to decline by 60% in 2023 and cut their price target by nearly half to $105.
Jim Cramer apologizes for believing Zuckerberg choked up
Jim Cramer, the host of CNBC’s well-known financial show “Crazy Money”, offered stock market advice in his trademark brash style, but the “Wall Street madman” apologized for tears on CNBC on Thursday in an uncharacteristic manner. Cause discussion in the community.
The reason for Cramer’s regret in the first place is because of Meta’s devastating financial report. The New York Times reported that Cramer had been a defender of Meta, and as recently as June, after he interviewed Zuckerberg about his plans for the Metaverse, he encouraged his audience to buy Meta stock, saying the stock had no choice but to rise. , and praised Zuckerberg for being “unstoppable” and that the Metaverse is a cool place to be.
On yesterday’s show, however, he apologized for believing Zuckerberg. He apologized in a choked voice:
“Let me say this, I was wrong. It was unwise for me to trust this management team, the hubris here is extraordinary, and I apologize.”
To his surprise, Meta didn’t take more “discipline” when it came to spending, but rather burnt cash reserves to invest in the metaverse:
“I thought people would understand that you can’t spend money directly through free cash flow, there has to be a certain level of discipline.
What did i do wrong? I trust them, not myself. I am sorry for that. I’ve been in this business for 40 years and I’m doing a terrible job. I am not proud. “