FB Faceplant

Facebook (FB) reported 4Q21 earnings after the close Wednesday. Daily Active Users (DAUs) were flat at 1.93 billion compared to 3Q21. Revenue was +20% year over year but Operating Income actually declined marginally due to an 810 basis point decrease in Operating Margin.

As if the quarter wasn’t bad enough on its own, FB guided 1Q22 Revenue to $27-$29 billion – representing only a 3-11% increase year over year. And full year 2022 expenses are expected to be $90-$95 billion compared to $71 billion in 2021. FB’s Operating Income for 2021 was $47 billion so that increase in expenses would eat up almost half of that!

FB shares are currently trading down more than 20% in the after hours at around $250. If that holds during Thursday’s session, it would wipe out all of FB’s gains for about the last 18 months. Talk about a faceplant!