Meta, owner of Facebook and Instagram, has fallen in the stock market after earning 36% less in the last quarter. The Actions of the company led by Mark Zuckerberg fell 4% in the market after hours after rising 6.5% in the regular stock market session. The American giant of social networks announced on Wednesday net profits between January and June of 14,152 million dollars. In the first half of the year, Meta -which in addition to Facebook also owns Instagram, WhatsApp, Messenger and Oculus- entered 56,729 million dollars, slightly above the turnover of the same period of 2021, while their operating expenses skyrocketedwhich explains the drop in earnings.
The increase in expenses was led by investment in research and development, an item to which the company allocated 5,104 million dollars more than in the first half of 2021, and which was followed marketing, sales and administrative costs. Between January and June, Meta investors pocketed $5.21 per share, down from $7 in the first half of last year.
Last June, 2,880 million people connected daily to one of the Meta applications, which represents more than a third of humanity, while 3,650 million did it at least once a month. Both figures represent a year-on-year user growth of 4% for the company led by Zuckerberg.
Through the second quarter of 2022, Meta apps served 15% more ads (the company’s main source of revenue), but the average price of ads fell 14% year over year. “We are devoting more and more energy and we are focusing on our key priorities as a company to achieve opportunities in the medium and long term for Meta and its users”Zuckerberg said when presenting the accounts.
The results of Meta were worse than expected by Wall Street analysts, so its shares fell 3.63% to $163.20 per title in electronic operations after the New York markets closed.
The US asks to block a purchase of Meta
The same day that the Meta results were known, the US Federal Trade Commission (FTC) presented an antitrust lawsuit to block the acquisition by Meta, a company until last October known as Facebook, of the company virtual reality Within. The FTC filed its petition in federal court in the Northern District of California, where it sought a temporary injunction halting the acquisition of Within, a company that makes the popular virtual reality fitness app Supernatural.
In its request, the FTC argues that Meta’s acquisition of Within, “one of the world’s largest technology companies,” “it would substantially reduce competition or tend to create a monopoly”. He added that such loss of competition could have “harmful results, such as less innovation, lower quality, higher prices, fewer incentives to attract and keep employees, and fewer choices for the consumer.”
the FTC called this acquisition “illegal” and noted that Meta could have chosen to compete with Within with its own virtual reality “fitness” apps. “If it can go ahead with this proposed acquisition of Within, the merger would present a reasonable probability of less substantial competition in the virtual reality fitness app market”, warned the regulator. The antitrust lawsuit has been filed against Meta, its CEO, Mark Zuckerberg, and Within.
In a statement, Meta responded that the case filed against the company by the FTC “it is based on ideology and speculation, not evidence”. The idea that this acquisition would lead to less competition “is just not credible,” he said. With this move, the FTC “is sending a chilling message to anyone who wants to innovate in virtual reality,” the firm warned.
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Meta, owner of Instagram and Facebook, falls on the stock market after earning 36% less