Tech

Facebook Cuts Costs as Meta Platforms Stock Tanks

Published

2 years ago

2022-10-27

Facebook parent Meta Platforms posted earnings that fell short of forecasts on Wednesday, plunging the company’s stock in after-hours trading as the social media giant with metaverse ambitions scrambles to slash expenses amid advertising headwinds caused by global economic concerns.

The claim comes less than a month after billionaire CEO Mark Zuckerberg outlined massive cost-cutting plans that included restructuring teams and implementing a hiring freeze.

According to Forbes, Meta reported a net income of $4.4 billion, or $1.64 per share, down 49% year on year and falling short of analyst forecasts of $1.89 per share; revenue of $27.7 billion was somewhat higher than the $27.4 billion forecasted, but down 4% year on year.

The corporation also stated that its revenue for the current quarter would be between $30 billion and $32.5 billion, which is at the lower end of average analyst projections.

Meta shares fell 11% to $115 soon after the report, bringing losses to more than 61% this year, significantly worse than the Nasdaq’s 30% drop.

Bank of America analyst Justin Post downgraded Meta shares to a neutral rating in a pre-earnings note, stating that the company’s investment in the immersive virtual reality world known as the metaverse “will remain [an] overhang” on the stock, costing an estimated $10.7 billion next year even as economic concerns potentially intensify.

Meta Platforms Restructuring

The report comes less than a month after Meta Platforms revealed plans to cut costs by restructuring some departments and putting a hiring freeze as ad revenue growth slows amid growing economic pressures:

On Monday, an investor with more than $300 million in stock asked the corporation to cut costs further by laying off workers.

In the earnings release, Meta Platforms CFO David Wehner stated that the company has “increased scrutiny on all areas of operating expenses,” but it also stated that its employee headcount would remain roughly flat from current levels next year; in the third quarter, the company’s free cash flow, which measures cash left over after operating expenses, fell to $173 million from $9.5 billion a year ago.

$47.2 billion in total. That was the value of Meta founder Mark Zuckerberg, 38, after the market closed on Wednesday.

Zuckerberg’s fortune, once valued at more than $130 billion, has dropped by more than 60% since Meta stock peaked in September 2021.

Meta Platforms Investor Urges CEO Mark Zuckerberg to Cut Costs

Mr. Zuckerberg, according to Altimeter Capital Chief Executive Brad Gerstner, must take urgent actions to streamline Meta’s operations and address a precipitous drop in the share price.

“Like many other organizations in a zero-rate environment,” Mr. Gerstner wrote in the letter, “Meta has gone into the realm of excess—too many people, too many ideas, too little urgency.” “Meta needs to rediscover its mojo.”

Meta Platforms shares have fallen more than 50% in the last 18 months, slashing the company’s market worth by more than $600 billion. On Wednesday, Meta will disclose profits after the bell.

Meta did not respond to the letter. Altimeter did not reply immediately to a request for comment.

According to FactSet, Altimeter, which manages over $18 billion, owned around 2.5 million Meta shares at the end of the second quarter. This position, at around $320 million, is not among Meta’s top 15 institutional shareholders.

Mr. Gerstner stated that his firm, which is based in Boston and has operations in Meta’s hometown of Menlo Park, Calif., has been a longtime shareholder in the company but now believes it needs to “become fit and focused.”

Mr. Gerstner stated that Meta should slash headcount expenses by 20%, reflecting the opinions of others who have recently suggested that digital businesses have become bloated with too many staff after years of expansion.

“It’s a well-kept secret in Silicon Valley that firms like Google, Meta, Twitter, and Uber could produce comparable levels of revenue with significantly fewer workers,” he claimed.

Meta reported 83,553 employees at the end of the second quarter, a 32% increase from the previous year.

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Like many other IT companies, Meta has been slashing costs for months, dealing with slowed growth and growing competition.

Mr. Gerstner also advised the business to reduce its investment in the metaverse, which Mr. Zuckerberg has hailed as the company’s future and estimated would require more than $10 billion in annual spending.

Mr. Gerstner advised the corporation to cap its spending at $5 billion per year, describing Meta’s commitment as “super-sized and alarming, even by Silicon Valley norms.”

Despite enormous investment thus far, the company is falling short of its metaverse aspirations to create an immersive online experience where users may work, buy, and play.

According to The Wall Street Journal, their primary metaverse service for consumers, Horizon Worlds, has less than 200,000 monthly active users.

“People are perplexed as to what the metaverse even is,” Mr. Gerstner wrote.

Mr. Gerstner emphasized that he was not making demands and believed in Meta’s future.

Source: WSJ, Forbes, VOR News

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Tech

NVIDIA’s Earnings: The Leader In AI Chips Demonstrates Relentless Growth.

Published

15 hours ago

2024-11-21

Salman Ahmad

(VOR News) – Nvidia, the world’s most valuable company and a catalyst of the artificial intelligence revolution, announced another quarterly report on Wednesday, much to the delight of investors.

The company’s value has risen by $2.2 trillion this year to reach $3.6 trillion, attributed to a neardoubling of chip sales. It reported revenue of $35.08 billion, which fell short of the anticipated $33.15 billion. Year on year, its profits more than doubled. Revenue rose 94% compared to the same quarter of the prior year.

Nvidia predicted 70% revenue growth in the quarter.

Nvidia reported earnings of $0.81 per share, exceeding analysts’ predictions by $0.81. After the announcement, Nvidia’s stock plummeted over 5% in extended trading but immediately recovered to stay at a comparable level; it had previously closed at $145.89 in New York.

In a press statement last week, Nvidia CEO Jensen Huang projected that the computational power facilitating generative AI development will increase by “a millionfold” over the next decade.

Huang asserted during an earnings call that the extensive adoption of Nvidia technology is instigating a platform transition from coding to machine learning, prompting the reconfiguration of traditional data centers to facilitate artificial intelligence development.

A novel industrial revolution poised to create an artificial intelligence sector valued in the multi-trillion dollar range. Generative artificial intelligence is a new industry with artificial intelligence factories manufacturing digital intelligence, not merely a new tool capacity,” he stated.

“AI is revolutionizing every industry, organization, and country,” stated Huang. “Constructing an artificially generated data omniverse… the epoch of robotics has commenced.”

The robust demand for NVIDIA’s Blackwell GPU chips appears to have mitigated concerns regarding a potential decline in the company’s demand, as major digital corporations invest billions in data centers and artificial intelligence processing.

From an August low, Nvidia’s valuation has climbed 45%.

Subsequent to the election, the semiconductor stock has attained unprecedented peaks, increasing almost 200% this year and exceeding 1,100% over the past two years.

Nevertheless, as they struggle to compete with Nvidia’s supremacy in AI, other chip manufacturers have become a net detriment to the industry.

Wedbush analyst Dan Ives anticipated another “drop-the-mic performance” from Nvidia before the results were announced, asserting that the business was “the sole contender with over $1 trillion in AI capital expenditure forthcoming over the next few years, with Nvidia’s GPUs representing the new oil and gold in this domain.”

Recently, top global IT companies spent billions on AI.

Nvidia is perceived by many as a barometer for the technology sector and the desire for artificial intelligence, which has driven Wall Street to numerous all-time highs this year.

Markets are anxious due to the escalation of the Russia-Ukraine conflict, the likelihood that the Federal Reserve will not reduce US interest rates, and the potential for global tariff increases under Donald Trump’s forthcoming administration.

Ives’ assertion that Nvidia’s forthcoming Blackwell processor might propel the company’s revenues and market capitalization to historic levels was corroborated by multiple analysts. Indicators of “extraordinary demand” for the new chip, including forecasts of unprecedented sales and accounts of depleted inventories for the forthcoming year, are significant indicators of Nvidia’s continued exceptional growth, as stated by Saxo chief investment analyst Charu Chanana.

Nevertheless, due to its inflated valuation, Chanana warned that “any indications of production delays or insufficient demand could exert pressure on the stock.”

This week, a source reported that the chipmaker is seeing server overheating issues with its latest graphics processors, the B200 and GB200 NVL72, named after renowned American statistician and mathematician David Harold Blackwell.

Nvidia’s spokesperson remarked that “the engineering iterations are standard and anticipated,” without explicitly dismissing the report.

“Minor details can disrupt significant investments consistently,” stated computer magnate Michael Dell.

SOURCE: TG

Tech

How to Boost Your Instagram Live Videos

Published

1 day ago

2024-11-21

PR News

Video marketing on Instagram is booming. Today, developers offer influencers and entrepreneurs many tools to make their pages popular and improve their online credibility and visibility.

Streams are one of the most effective ways to communicate with the audience, expand reach and improve engagement. However, as with everything else, you should clearly understand what results you expect from this type of PR and what tools will help you achieve them.

Of course, the competition here is high and intense, so you should know the best ways to promote your live sessions and improve their visibility to stay ahead of the competition and make your streams better and viewed every day. You need to know several secrets to achieve the desired result here, and today, we’ll tell you about them. Keep reading!

Use paid Instagram service.

So, your goal is to get as many views as possible and attract more loyal fans. How can you do this? Generally speaking, there are many ways, but they all require a lot of effort, time and resources from you. Most of them are created for long-term PR; you’ll get the result from free methods only after a few weeks or months.

The best thing is that you can greatly simplify your growth and instantly get as many interactions as you want. The secret is simple. Today, professional advertising companies offer various boosts for rapid growth, including the opportunity to buy Instagram live video views.

You can check out Viplikes: https://viplikes.net/buy-instagram-live-video-views. In other words, real people will come to your stream and stay here for a while. Such a purchase will inevitably attract more new target subs – your live session will occupy a leading position in their feed. So, if you don’t have time to promote live videos in freeways or want to support your content, use a paid boost and combine it with other secrets of success, which we’ll share below.

Notify your followers and post teasers.

Yes, it’s normal if you start a stream without any notifications for your subscribers, but in this case, you should keep in mind that there will be much fewer interactions than you would like. That’s why SMM specialists and famous content makers recommend notifying fans in advance and writing the live session’s time, date and topic. Agree this is logical; if people know about the upcoming live video, they are more likely to visit it. So, if you aim to build up a large viewing base, keep this rule in mind and notify subscribers using Stories, Reels, posts or something else.

It’s the same with teasers: spread as much information as possible about the upcoming stream. Promise something unique and interesting that will be available only to live spectators. This is another secret of a successful session!

Collaborations

If you’ve never started streaming with another influencer, it’s time to do so! This is one of the best ways to quickly attract new spectators and improve live video statistics—a double benefit.

But you need to understand that not all bloggers agree to such activities, so it’s better to choose those with whom you’re already familiar or who have the same statistical indicators. Then, the effectiveness of the live sessions will be excellent, and the collaboration will go smoothly. Good luck!

Turkey Instagram Ban Update!! Nationwide Blackout

Turkey Instagram Ban Update!! Nationwide Blackout

Tech

The Impact of Tier Regions on Digital Advertising ROI

Published

2 days ago

2024-11-20

Geoff Brown

In today’s complex digital advertising world, knowing Tier regions is key. It is vital for getting the best ROI. Tier regions, also known as Tier 1, Tier 2, and Tier 3, refer to separate markets that may have different levels of economic development and different purchasing and media consumption patterns.

All markets raise prospects and issues that can affect ad success. This article reviews Tier regions and their impact on digital ad ROI, aiming to help marketers refine their strategies.

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Understanding Tier Regions

Tier 1 countries are generally developed economies with higher disposable income, such as the United States, Canada, and some Western European countries. These markets are usually characterized by high levels of advertisement clutter, that is, high competition, yet the population is accustomed to advertisements.
Tier 2 regions are emerging markets like Brazil, India, and parts of Eastern Europe. These areas have relatively higher rates of economic growth and growing Internet usage, hence becoming the right place for advertisers. Yet they can also have disadvantages, including fluctuations in consumer behavior and less overall buying power compared to Tier 1 markets.
Tier 3 regions generally encompass developing countries with slower economic growth, and digital infrastructure may still be in its infancy. Although these markets present long-term growth, the short-term effectiveness may be low owing to consumer purchasing capability and frequency of exposure to online advertisements.

Consumer Behaviour Concerning Organizational Setting

The behavior of the consumers in the different Tier regions is quite divergent. So, which Tier to choose? Tier 1 markets are usually more selective. They demand high quality and relevancy of the offered content.

They also prefer to interact with companies that have values that they hold dear, such as environmental conservation and corporate social responsibility values. This means that in these regions, the advertising companies may be forced to spend more time developing appealing messages to the target market.

In contrast, Tier 2 and Tier 3 consumers will likely follow the low involvement model, where the communication strategy consists of simple messages that focus on value and utility.

Advertisers targeting these regions should not concentrate on sales conversion but on branding to foster consumer trust. Marketing people who understand these differences in behaviors can help them adapt to them and gain much better ROI than they would expect.

Cost Considerations

The cost of advertisement is greatly influenced by the Tier regions, as illustrated in the figure below. Because of high competition, in Tier 2 and Tier 3 markets, there will be higher cost per click (CPC) and cost per impression (CPM).

This may, therefore, translate into higher initial costs, but it usually has the potential to give higher returns if the campaigns are managed appropriately.

Tier 2 and Tier 3 locations have lower GDP per capita, so advertising costs less there. This will attract brands with limited budgets.

However, marketers need to be wary; the latter is not necessarily always true, meaning that it is not rare to see lower costs entail lower ROI. The success of these campaigns can depend on audience activity and brand familiarity in different regions.

Measuring Success

Therefore, it is important to set success metrics, especially when comparing the ROI of Tier regions. Traditional measures, such as conversion rates and customer acquisition costs, may work better in Tier 1 markets.

In Tier 2 and Tier 3 cities, the end action value may better define success. Depending on the segmentation and targeting strategies, metrics like brand awareness or engagement might work, too.

For instance, tracking such factors as interactions on social networks or website attendance can significantly determine how successfully the campaign reflects the interests of the target audience in these regions.

The Tier region analysis of the current success metrics can be seen through the following perspective: marketers need to set up detailed success metrics depending on the attributes of every Tier region, which can provide a closer look at the campaign results.

Future Trends

Knowing new trends in digital ads in Tier regions will be key to getting high returns in the future. For example, mobile-first ads suit Tier 2 and 3 markets. These markets have the most active online users of mobile devices. Mobile campaign companies could reach many consumers and boost engagement.

Further, improved data analysis methods and artificial intelligence are helping advertisers better decide where to spend their money across Tier regions. These technologies allow marketers to fine-tune their campaigns over the traffic flow to maximize every strategy implemented for the best returns on investment.

Conclusion

The importance of Tier areas for digital advertising ROI cannot be underscored. Marketers may create more successful tactics for their target audiences by knowing the distinct features of each Tier, such as customer behavior, cost considerations, and success indicators.

As we approach 2024 and beyond, staying on top of area trends will be critical for optimizing advertising results. Those who adapt will succeed in today’s international digital marketplace.