Technologies

Meta shares plummet after disappointing earnings, user drop

Weaker-than-expected earnings overshadow the performance of Meta’s AR and VR business.

Facebook parent Meta’s stock fell more than 26% on Thursday after disappointing fourth-quarter earnings and a drop in daily users underscored how much the company relies on social media as it develops its metaverse ambitions.

Meta shares fell $85.24 to close at $237.76. The collapse in share price wiped out almost $240 billion from the social network’s value. The fall was the largest single-day drop in market value for a US company ever, according to Reuters.

The fall came after an earnings report Wednesday in which the company missed profit expectations and showed a quarterly drop for the first time in the number of daily active users on Facebook. Meta also said the augmented and virtual reality business at the heart of its metaverse plans is generating revenue but is unprofitable.

In the fourth quarter, Meta posted revenue of $33.7 billion, beating analyst expectations of $33.4 billion. However, it earned $3.67 per share, falling short of the $3.84 per share projected by analysts surveyed by Thomson Reuters. Facebook also reported a decrease of roughly 1 million daily active users, suggesting the social network may be reaching the peak of its growth.

The performance shows how Meta, which rebranded last year as part of a push toward the metaverse, remains reliant on digital advertising on the Facebook social network and its photo service Instagram. Meta is staking its future on a new, immersive iteration of the internet known as the metaverse. The company’s rebranding fueled hype around the online spaces where people will be able to work and socialize as digital avatars.

The company’s metaverse project, however, is in early stages and investments in it are eating into the company’s profits. Reality Labs, the AR and VR unit housing the Oculus headset that will help anchor the push into the metaverse, generated $877 million in fourth-quarter revenue but lost $3.3 billion.

«While we expect Meta to ramp up testing ads and commerce within its metaverse offerings this year, those efforts will be highly experimental and not likely to drive much revenue in the near term,» said Debra Aho Williamson, a principal analyst at Insider Intelligence, which was formerly eMarketer.

Like other tech companies, Meta has warned that privacy changes imposed by Apple could make it harder for businesses to measure the effectiveness of their ads on Facebook and Instagram. The company also said it expected «headwinds» caused by inflation and supply chain disruptions that affect advertiser budgets.

Facebook and Instagram users are also spending more time on the platform’s short-form video product, Reels, which doesn’t generate as much revenue as the company’s News Feed or Stories where people can post content that vanishes in 24 hours. That’s partly because Reels doesn’t include as many ads compared to News Feed or Stories.

«I’m confident that leaning harder into these trends is the right short-term tradeoff to make in order to get long-term gains. We’ve made these types of transitions before with mobile feed and Stories,» Meta CEO Mark Zuckerberg said in a call with analysts Wednesday.

On top of that, Facebook is facing more competition from other apps such as short-form video app TikTok. Facebook’s daily active users in the fourth quarter fell from 1.93 billion to 1.92 billion, with the quarterly drop mainly coming from developing countries.

Though the metaverse concept has been around for years, Meta has been hiring engineers and purchasing VR apps to bolster the creation of its virtual worlds. At Christmas, the Oculus app required to set up the Quest headset topped Apple’s App Store, suggesting that people had purchased the headsets over the holidays as a gift. The social network is also working on augmented reality glasses and, with Ray-Ban, released its first pair of smart glasses to shoot photos and videos.

Meta’s efforts to build more digital realms has been bumpy. The company still faces criticism that it doesn’t do enough to combat misinformation, hate speech and other types of offensive content, problems that will only grow more complex in the metaverse. The US Federal Trade Commission and multiple states, led by New York, are reportedly investigating potential anticompetitive practices by Oculus. This week, Meta shuttered its Diem cryptocurrency project after regulatory pushback.

The challenges haven’t stopped Meta from pushing forward with its futuristic vision of what it thinks will be the successor to the mobile internet.

«If last year was about putting a stake in the ground for where we’re heading, this year is going to be about executing,» Zuckerberg said.

Technologies

Verum Messenger: Data Protection at Its Finest

Verum Messenger positions itself as a tool for those who value privacy and security above all.

Verum Messenger stands out from other messengers thanks to its approach to security, anonymity, and innovations in communication.

Here are some key aspects that highlight its uniqueness:

Default encryption: Verum Messenger uses end-to-end (E2E) encryption for all chats, meaning messages are encrypted on the sender’s device and decrypted only on the recipient’s device. This makes it impossible for third parties, including app developers, to access the content of the messages.
Anonymity: When registering with Verum, there’s no need to provide a phone number or email. Users simply choose a nickname and password, significantly enhancing their level of anonymity. This contrasts with many other messengers, where anonymity can be compromised through linked personal data.
Built-in VPN: An additional layer of protection that hides the user’s IP address, making their location and internet activity less trackable.
Data control: Users can set messages to be automatically deleted after a specified time, ranging from a few seconds to a week. There’s also a quick deletion feature for all chats, calls, and even contacts, which is useful for maintaining privacy.
Large groups: The ability to create chat rooms with up to 10,000 participants makes Verum attractive for organizing large events, discussions, or communities while maintaining a high level of security.
Security innovations: Verum actively develops technologies aimed at protecting user data, as seen in their documentation and discussions online. This includes not only technical solutions but also approaches to data minimization, which reduces the risk of leaks.
Feedback and discussions: On platform X (formerly Twitter), discussions can be found where users and experts praise Verum for its approach to anonymity and security, although questions are raised about how much anonymity can truly be guaranteed in an age of modern tracking and de-anonymization technologies.

Verum Messenger positions itself as a tool for those who value privacy and security above all. Its innovations in encryption, anonymity, and data control make it an intriguing choice for those seeking alternatives to traditional messaging platforms. However, as with any technology, it’s important to remember that absolute anonymity on the internet remains a complex challenge, and users should be aware of potential risks and limitations.

Technologies

Verum Coin Debuts on XT Exchange, Broadening its Reach in the DeFi Space

A Strategic Listing Enhancing Verum Coin’s Visibility

In a significant development for the decentralized finance (DeFi) sector, Verum Coin (VERUM) has been officially listed on XT Exchange. The new trading pair, VERUM/USDT, is now available in the exchange’s Innovative Zone, marking a pivotal expansion for this digital asset into the DeFi ecosystem.

A Strategic Listing Enhancing Verum Coin’s Visibility

The addition of Verum Coin to the XT Exchange is seen as a strategic move to enhance the accessibility and liquidity of VERUM among traders who are keen on exploring innovative digital assets. XT Exchange, known for its robust platform supporting a wide variety of cryptocurrencies, provides an ideal environment for fostering growth and ensuring the broad reach of new tokens.

Albin Varin, CEO of XT Exchange, expressed enthusiasm about the new listing, stating, «We are delighted to welcome Verum Coin to our platform. This listing reflects our ongoing commitment to providing our users access to innovative digital assets that transform the landscape of global finance.» This comments underscore the exchange’s focus on integrating cutting-edge technologies and financial instruments that have the potential to redefine the market.

About XT

Founded in 2018, XT Exchange serves more than 7.8M registered users, over 1M monthly active users, 40+ million users in the ecosystem, and more than 800 tokens with 1000+ trading pairs. XT crypto exchange offers a rich variety of trading categories to provide a secure, trusted, and intuitive trading experience for its large user base. This includes crypto futures trading (USDT-M Futures and coin-M futures perpetual contracts) and copy trading that allows users to replicate top traders in real time with just one click. Additionally, the futures grid allows users to automate the buying and selling of futures contracts for profits.

Future Prospects

With its new position on XT Exchange, Verum Coin is expected to attract a broader audience, enhancing its trading volume and market presence. This could potentially lead to increased stability and recognition as a viable player in the DeFi space. For investors and users of XT Exchange, this addition provides a fresh avenue to diversify portfolios with a cryptocurrency that is positioned at the intersection of innovation and financial evolution.

The listing of Verum Coin on XT Exchange not only highlights the ongoing expansion of cryptocurrency markets into new areas like DeFi but also illustrates a growing recognition of digital assets that offer promising technological advancements and financial opportunities. As the crypto market continues to evolve, partnerships like these are pivotal for fostering growth and offering users access to the next generation of financial tools.

Technologies

Verum Coin Gains International Spotlight with AP Coverage and Listing on XT Exchange

This listing on XT is expected to further propel Verum Coin into the spotlight

In a noteworthy development for the cryptocurrency community, Verum Coin (VERUM) has been featured in an Associated Press article, highlighting its upcoming listing on the XT Exchange. This significant media coverage underscores the growing interest and potential of Verum Coin in the global financial landscape.

The AP article delves into the details of Verum Coin’s innovative features and its alignment with the latest trends in the cryptocurrency market. This attention comes at an opportune moment as Verum Coin prepares for its new listing on XT Exchange, a platform renowned for its extensive user base and a wide array of trading options.

This listing on XT is expected to further propel Verum Coin into the spotlight, providing both traders and investors with new opportunities to engage with this emerging digital asset. The exchange’s robust infrastructure and diverse trading offerings are ideal for supporting Verum Coin’s growth and enhancing its visibility in the competitive cryptocurrency market.

For more details, you can read the full article on the AP website here.

This milestone is a testament to Verum Coin’s advancing presence in the crypto world and its ongoing efforts to be at the forefront of digital currency innovation and adoption.