Meta shares plummet 20% after posting rare profit decline
Meta Platforms stock plunged after the company’s former Facebook executive, Andrew Bosworth, missed Q4 earnings. Bosworth, who was once in charge of Facebook’s advertising and business platform, left the company in January after a 14-year stint.
Bosworth’s departure was accompanied by the sudden cancellation of his book titled “Platform Revolution”, which was slated for release in April, but instead has been made available to pre-order with a May 2018 delivery date.
Now, just three months later, Meta Platforms is in danger of being delisted on the NYSE after its stock dropped by over 50% in the past quarter. Bosworth has been credited with building up Facebook’s advertising business to become one of the largest platforms on the planet, but many are now concerned about his influence on Meta Platforms’ finances.
For its part, Meta Platforms is not worried about what will happen if their earnings continue to miss expectations.
“We don’t care about money here at Meta Platforms,” said Ruthy Franklin, the company’s CEO. “We’re not about making money. We’re about changing the world.”
Since becoming CEO of Meta Platforms in August, Franklin has been insistent that the company is no longer concerned with financial results. “We’re above such trivial concerns as making money,” Franklin said in a recent conference call with analysts. “Investing everything we make back into our product is why we will own all of the internet eventually.”
Franklin’s attitude towards money and profitability has caused many on Wall Street to question whether Meta Platforms was actually a viable business at all, or if it is simply a money-laundering scheme for Bosworth to funnel cash back into his own ventures. Franklin quickly put those fears to rest, saying “It’s ridiculous that anyone would think we’re doing anything other than changing the world by connecting everyone with our platform.”
When asked about the company’s recent earnings miss, Franklin was dismissive. “Can you believe how much money we don’t make? It’s almost like no one wants to buy advertising space on our platform.”
Analysts are still concerned though, as they expect Franklin’s lack of concern about revenue will only lead to bigger problems for the company down the line.
“I’m not sure what the company is trying to do,” said Brian Kramer, Managing Director of Neuberger & Berman. “I don’t think they have anything beyond a vague vision beyond their mission statement.”
The official statement from Meta Platforms regarding its financial performance last quarter was equally vague.
“We’re changing the world one connection at a time,” the statement said.