Meta Shares Sink on Weak Earnings, Previewing Amazon’s Q4 Results & Senate Committee Advances Tech Competition Bill

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.5 • 66 Ratings

🗓️ 3 February 2022

⏱️ 44 minutes

🔗️ Recording | iTunes | RSS

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Summary

Our anchors start today’s show covering Meta’s shares plunging after posting weak earnings and previewing Amazon’s Q4 results after the bell, with insight from Needham Senior Analyst Laura Martin. Next, CNBC’s Mike Santoli covers Meta’s disappointing quarter dragging the Nasdaq lower, and Redburn Partner Nick Delfas joins for an in-depth conversation on Spotify. Then, our Julia Boorstin highlights social stocks sinking on Meta’s results, and Bernstein Senior Analyst Mark Shmulik takes a closer look at the social media giant’s underwhelming numbers. Later, Harlem Capital Managing Partner Jarrid Tingle discusses capital deployment for Black-led companies, and CNBC’s Ylan Mui reports on the Senate Judiciary Committee advancing a new bill focused on Apple and Google’s app stores. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0	I'm Carl Kintanilla. You're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern. Listen in.
0:27.3	Happy Thursday. I am John Fort with Carl Kingtonia and Deirdreboso.
0:35.3	Today, a meta-reverse. Facebook shares crash more than 25% at one point, down about 24.5% now on an earnings miss.
0:37.8	Is the stock now attractive at this valuation?
0:42.4	What about the other social or ad-supported companies that are in free fall this morning?
0:47.5	Those stories coming up. Plus, can you spot the pattern? Investors not believing this growth story. Spotify slumps as more artists pull their music. You can see it down there more than 14%.
0:54.3	And then an interesting report just got a lot more interesting.
0:58.0	Amazon is coming up after the bell.
1:00.5	Will it pull of PayPal meta Netflix and disappoint, sending shares cratering,
1:05.1	or are investors missing a giant Q4 under the surface like Apple, like UPS, like Microsoft, like Alphabet.
1:12.6	That all plays out today, Carl.
1:15.6	John, we're going to start squarely with Meta.
1:18.6	As you said, a complete re-rating of the company today.
1:21.6	Shares falling off a cliff as the company posts a rare earnings miss.
1:25.6	Only the third time ever, a market cap now below $700 billion,
1:29.3	disappointing guidance, stalling user metrics, all weighing on the stock. Also taking a hit from
1:34.0	macro challenges to inflation, supply chain affecting its advertisers. Apple's privacy changes,
1:40.0	the other big hurdle, although interestingly Alphabet didn't feel the pain there. That divide now
1:44.7	becomes a big area of focus for investors. Facebook had the lowest forward PE ratio going into
1:50.4	earnings, now sitting at 18. That's 18 times forward earnings compared to 27 over at Alphabet, John. And of course,
1:57.7	that's not even talking about the level of investment they are making on Metaverse in the coming years.
2:03.3	This gets to something that had been bothering me for a while. I think I mentioned it here on Tech Check,
	...

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