Meta Platforms stock price: what to expect from the fourth quarter results

When does Meta Platforms report revenue?

Meta Platforms (formerly Facebook) is expected to release its fourth quarter (Q4) 2021 financial results on February 2, 2022, after market close. At the time of writing, expectations for its earnings per share (EPS) for the fourth quarter are $3.84, down 1.0% year-over-year (YoY) and 19.3% compared to the previous quarter.

Revenue from meta platforms – what to expect

As a key leader in the social media space, upcoming revenue from Meta Platforms could boost the performance of Snap and Twitter, as well as digital advertiser Alphabet. Its revenue is expected to reach $33.4 billion, up 18.9% year-on-year and 15.1% from the prior quarter. Previously, Meta Platforms missed market expectations for revenue in the third quarter (Q3) 2021 and its revenue forecast for the fourth quarter at that time was also lower than analysts’ estimates. With its share price on a downtrend ever since, revenue for the upcoming fourth quarter will be watched to validate whether its sales growth can outperform.

One of the key performance indicators, the average revenue per user (ARPU), can also be worked out. Seasonally, the fourth quarter tends to see the ARPU figure outpace other quarters, as the end-of-year holiday season may see a greater surge in commercial advertising. That said, Apple’s iOS 14 changes that require apps to ask users’ permission for data collection and sharing remain a major factor. This comes in the form of meta-platforms potentially reducing the accuracy of ad targeting and limiting their ad prices accordingly. We saw the impact play out in the third quarter, with its ARPU down 1.2% quarter-over-quarter (QT), in what traditionally should be an increase. With that, any additional impact to the holiday-focused fourth quarter will continue to be monitored to gauge the ability of meta-platforms to mitigate these changes.

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