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

Today’s NYT Strands Hints, Answers and Help for Feb. 7 #706

Here are hints and answers for the NYT Strands puzzle for Feb. 7, No. 706.

Looking for the most recent Strands answer? Click here for our daily Strands hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections and Connections: Sports Edition puzzles.

Today’s NYT Strands puzzle is especially tricky, as a variety of words could fit the theme. Some of the answers are difficult to unscramble, so if you need hints and answers, read on.

I go into depth about the rules for Strands in this story.

If you’re looking for today’s Wordle, Connections and Mini Crossword answers, you can visit CNET’s NYT puzzle hints page.

Read more: NYT Connections Turns 1: These Are the 5 Toughest Puzzles So Far

Hint for today’s Strands puzzle

Today’s Strands theme is: Boo-o-o-o-ring

If that doesn’t help you, here’s a clue: Zzzz… not very exciting.

Clue words to unlock in-game hints

Your goal is to find hidden words that fit the puzzle’s theme. If you’re stuck, find any words you can. Every time you find three words of four letters or more, Strands will reveal one of the theme words. These are the words I used to get those hints but any words of four or more letters that you find will work:

HIND, DATE, DRUM, MOST, CHIN, PAIN, RAIN, NOSE, TOME, TOMES

Answers for today’s Strands puzzle

These are the answers that tie into the theme. The goal of the puzzle is to find them all, including the spangram, a theme word that reaches from one side of the puzzle to the other. When you have all of them (I originally thought there were always eight but learned that the number can vary), every letter on the board will be used. Here are the nonspangram answers:

DULL, DREARY, HUMDRUM, MUNDANE, TIRESOME

Today’s Strands spangram

Today’s Strands spangram is WATCHINGPAINTDRY. To find it, start with the W that’s three letters up from the bottom on the far-left row, and wind up, across and down.

Toughest Strands puzzles

Here are some of the Strands topics I’ve found to be the toughest.

#1: Dated slang. Maybe you didn’t even use this lingo when it was cool. Toughest word: PHAT.

#2: Thar she blows! I guess marine biologists might ace this one. Toughest word: BALEEN or RIGHT.

#3: Off the hook. Again, it helps to know a lot about sea creatures. Sorry, Charlie. Toughest word: BIGEYE or SKIPJACK.

Technologies

Spotify Launches ‘About the Song’ Beta to Reveal Stories Behind the Music

The stories are told on swipeable cards as you listen to the song.

Did you know Chappell Roan drew inspiration for her hit song Pink Pony Club from The Pink Cadillac, the name of a hot-pink strip club in her Missouri hometown? Or that Fountains of Wayne’s song Stacy’s Mom was inspired by a confessed crush a friend had on the late co-founder Adam Schlesinger’s grandmother?

If you’re a fan of knowing juicy little tidbits about popular songs, you might find more trivia in About the Song, a new feature from streaming giant Spotify that’s kind of like the old VH1 show Pop-Up Video.

About the Song is available in the US, UK, New Zealand and Australia, initially for Spotify Premium members only. It’s only on certain songs, but it will likely keep rolling out to more music. Music facts are sourced from a variety of websites and summarized by AI, and appear below the song’s lyrics when you’re playing a particular song.

«Music fans know the feeling: A song stops you in your tracks, and you immediately want to know more. What inspired it, and what’s the meaning behind it? We believe that understanding the craft and context behind a song can deepen your connection to the music you love,» Spotify wrote in a blog post.

While this version of the feature is new, it’s not the first time Spotify has featured fun facts about the music it plays. The streaming giant partnered with Genius a decade ago for Behind the Lyrics, which included themed playlists with factoids and trivia about each song. Spotify kept this up for a few years before canceling due to multiple controversies, including Paramore’s Hayley Williams blasting Genius for using inaccurate and outdated information.

Spotify soon started testing its Storyline feature, which featured fun facts about songs in a limited capacity for some users, but was never released as a central feature.

About the Song is the latest in a long string of announcements from Spotify, including a Page Match feature that lets you seamlessly switch to an audiobook from a physical book, and an AI tool that creates playlists for you. Spotify also recently announced that it’ll start selling physical books.

How to use About the Song

If you’re a Spotify Premium user, the feature should be available the next time you listen to music on the app.

Start listening to any supported song.
Scroll down past the lyrics preview box to the About the Song box.
Swipe left and right to see more facts about the song.

I tried this with a few tracks, and was pleased to learn that it doesn’t just work for the most recent hits. Spotify’s card for Metallica’s 1986 song Master of Puppets notes the song’s surge in popularity after its cameo in a 2022 episode of Stranger Things. The second card discusses the band’s album art for Master of Puppets and how it was conceptualized.

To see how far support for the feature really went, I looked up a few tracks from off the beaten path, like NoFX’s The Decline and Ice Nine Kills’ Thank God It’s Friday. Spotify supported every track I personally checked.

There does appear to be a limit to the depth of the fun facts, which makes sense since not every song has a complicated story. For those songs, Spotify defaults to trivia about the album that features the music or an AI summary of the lyrics and what they might mean.

Technologies

Today’s NYT Connections: Sports Edition Hints and Answers for Feb. 7, #502

Here are hints and the answers for the NYT Connections: Sports Edition puzzle for Feb. 7, No. 502.

Looking for the most recent regular Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle and Strands puzzles.

Today’s Connections: Sports Edition features a fun batch of categories. The purple one requires you to find hidden words inside some of the grid words, but they’re not too obscure. If you’re struggling with today’s puzzle but still want to solve it, read on for hints and the answers.

Connections: Sports Edition is published by The Athletic, the subscription-based sports journalism site owned by The Times. It doesn’t appear in the NYT Games app, but it does in The Athletic’s own app. Or you can play it for free online.

Read more: NYT Connections: Sports Edition Puzzle Comes Out of Beta

Hints for today’s Connections: Sports Edition groups

Here are four hints for the groupings in today’s Connections: Sports Edition puzzle, ranked from the easiest yellow group to the tough (and sometimes bizarre) purple group.

Yellow group hint: Golden Gate.

Green group hint: It’s «Shotime!»

Blue group hint: Same first name.

Purple group hint: Tweak a team name.