Kif Leswing, reporting for CNBC:
Facebook parent Meta said on Wednesday that the privacy change
Apple made to its iOS operating system last year will decrease the
social media company’s sales this year by about $10 billion. “We
believe the impact of iOS overall is a headwind on our business in
2022,” Meta CFO Dave Wehner said on a call with analysts after the
company’s fourth-quarter earnings report. “It’s on the order of
$10 billion, so it’s a pretty significant headwind for our
Facebook’s admission is the most concrete data point so far on the
impact to the advertising industry of Apple’s App Tracking
Transparency feature, which reduces targeting capabilities by
limiting advertisers from accessing an iPhone user identifier.
Meta shares sank 23% in extended trading on Wednesday after the
company warned about numerous challenges and came up short on user
numbers. Facebook said first quarter revenue will be $27 billion
to $29 billion, while analysts were expecting that number to
exceed $30 billion.
Wehner said the $10 billion revenue hit this year is merely a
Facebook’s stock stayed down all day, wiping $200 billion in value from the company’s market cap — the biggest one-day drop in market value ever. Couldn’t happen to a nicer company.
Worth noting that on Facebook’s analyst call, when pressed on this $10 billion figure, Wehner offered nothing to back it up. Really strong vibes of “The problem isn’t us, or our products — it’s mean old anti-competitive Apple.” It doesn’t seem like anyone bought that line.
★ Thursday, 3 February 2022