Tech giant Meta Platforms Inc. saw its stock decline by double digits after it reported $10.2-billion worth of losses on its newly minted Facebook Reality Labs in 2021.
FB is down 21.98% premarket.
Facebook Reality Labs raised $2.3 billion in revenue for the full-year 2021, equivalent to 1.98% of Meta’s $116 billion revenue. The new division recorded a revenue loss of $877 million in the fourth quarter.
Meta’s fourth-quarter earnings per share stood at $3.67, lower than the market’s consensus of $3.85. Revenue for the quarter was $33.7 billion, above the market expectation of $33.4 billion.
Meta’s earlier said Facebook Reality Labs is expected to drag its 2021 operating profit by some $10 billion, and reiterated its commitment to spend more for such operations in the next years.
Meta’s first-quarter 2022 revenue guidance was set between $27 billion to $29 billion, lower than the market consensus of $30.2 billion.