Facebook shares are likely to stay in the penalty box for some time in the wake of a lackluster fourth quarter and even worse 2022 outlook as Apple privacy changes and a surging TikTok take their collective toll on profits.
“Shares are probably dead money at this level of growth for at least the next three months,” said top tech analyst Mark Mahaney of EvercoreISI on Yahoo Finance Live.
Meta shares were rocked to the tune of 25% on Thursday’s session, and rightfully so most analysts said.
Facebook added just 2 million monthly active users in the quarter, barely moving the needle from the prior quarter. In the third quarter, the platform added 15 million monthly active users.
Daily active users fell by 1 million. The company missed analyst profit estimates by a whopping 14 cents.
Other red flags from the fourth quarter included:
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Operating profit margins in the Family of Apps segment…
