Facebook Parent Meta Sheds $200bn In Stock Plummeta
Facebook’s parent firm Meta on Thursday plunged over $200 billion in stock value — comparable to the size of New Zealand’s economy — after results that raised doubts about the troubled social media giant’s future.
In addition to costs of big investments on its metaverse vision for the internet and trouble for its core ads business, the firm predicted slower growth and even reported its first dip in daily users globally on the signature Facebook platform.
Facebook has long been marked by an insatiable push for growth, and now has nearly two billion daily users, but the results laid bare the challenges facing the social media giant on several fronts.
Shares have been down about 25 percent since shortly after the opening in New York, resulting in a more than $200 billion hit to the company’s market value.
“It was a disaster quarter for Facebook and clearly they have some major headwinds over the next year,” Wedbush’s Dan Ives said.
Facebook founder Mark Zuckerberg had some $25 billion in value wiped from his personal holding by the rout on Wall Street, according to filings on the company stock he owns.
Risk of not growing
Meta, which also owns Instagram and WhatsApp, has noted that it faces fierce competition for young users from the likes of explosively growing short-form video platform TikTok.
Ahead of results, analysts expected 1.95 billion daily active users on Facebook, but Meta reported 1.93 billion — a key indicator for where the platform is headed.
On the financial side, Meta reported a turnover of $33.67 billion, in line with its forecasts, but it made $10.3 billion in net profit in the fourth quarter, eight percent less than last year.
Investors also recoiled at Facebook’s report of losing roughly one million daily users globally between the last two quarters of 2021 — a fraction of the total but a potential signal of stagnation.
“It’s the first time the user base is shrinking,” said analyst Adam Sarhan from 50 Park Investment. “If the company is not growing, then it’s a complete reset for investors.”
It is essential to note Meta is a still massive and growing on the whole — as 2021 closed, 2.8 billion people used one of its four platforms and messenger services at least once a day, and 3.6 billion at least once a month.
One way out of Meta’s troubles would be to acquire the next big thing in social media, as it has done previously.
But the company is under considerable scrutiny from US regulators after the damning allegations that emerged from its whistleblower crisis last year.
The internal documents leaked by ex-worker Frances Haugen highlighted accusations that executives prioritized growth over keeping their billions of users safe.
However, Thursday’s dramatic sell-off is the latest to confront a Big Tech firm after a similar liquidation of Netflix shares last month, though the streaming giant has somewhat rebounded since.
Other tech giants such as Apple and Google parent Alphabet have rallied after results — though they both recently posted excellent numbers that calmed jittery markets.
Stocks have risen the last four days as the markets try to rebound from a bruising January pressured by worries over shifting US Federal Reserve policy and uncertainty over the crisis in Ukraine.
But the sharp fall in Meta and some other tech names “is raising doubts about the sustainability of the broader rebound effort,” said Briefing.com analyst Patrick O’Hare.
Oando, Lagos Begin Operation Of Electric Mass Transit Buses
Oando Clean Energy Limited, the renewable energy subsidiary of Oando, in partnership with the Lagos Metropolitan Area Transport Authority, on Tuesday, marked the formal commencement of operations of Oando’s electric mass transit buses at the Lagos Bus Services Limited Head Office, Ilupeju, Lagos.
A statement from Oando stated that the initiative aimed at transitioning the Lagos State public transport system through the development of a pathway to a carbon free mobility ecosystem within the state.
It stated that the buses would provide a viable, competitive, and environmentally friendly alternative to the current internal combustion engine mass transit buses.
The Managing Director, LAMATA, Abinbola Akinajo, highlighted the importance of public-private-partnerships, by stating that “this initiative is a major aspect of our vision for transportation in Lagos State, we are desirous of having a clean and efficient transportation system.
“Today’s event is proof of our desire to involve the private sector in our activities to give the average Lagosian the ability to meet their mobility needs. LAMATA is a multi-fuel transport regulatory agency for Lagos, hence the partnership with OCEL for the use of EV buses in passenger operations.
“From LAMATA’s perspective we are open to do business with the private sector while ensuring that these partners are aligned with the vision of Lagos state. I am elated that in just over a year that Oando Clean Energy came to us to discuss the possibility of working with us in the deployment of electric buses we have signed an MoU with a key deliverable being the implementation of a PoC that would allow us finally include electric buses in our ecosystem.”
On his part, the commissioner for Energy and Mineral Resources, Lagos State, Engr Olalere Odusote , said “We had identified transportation as a major cause of pollutants and health problems in the State. For us, this initiative is another step we’re taking as a Government to ensure we clean up the environment in addition to ongoing initiatives in the energy sector.”
Speaking at the event, the president/CEO of OCEL, Dr. Ainojie ‘Alex’ Irune noted that it was an opportunity for Oando and Lagos State government to revolutionise transport in the country, especially Lagos.
“In the very near future, we will have a multitude of locally trained engineers who are capable of operating, maintaining, and servicing these buses and other renewable energy assets,” he added.
‘Our Electric Buses can travel up to 280km on a Full Battery Charge’- Oando Group tells Lagos Residents
‘Be the start of something that is good, revolutionary and powerful. Everything after that is a bonus!’
The OANDO group and its team of experts must have had the above quote by Carlos Wallace in mind when they embarked on the journey to revolutionise motoring in Nigeria and introduced the first set of fuel less vehicles into system.
Determined to be part of the revolution to end air pollution which ultimately has been made worse by the emission of toxic elements destroying our planet, the Oando Clean Energy Limited (OCEL) made history with its inroad into the transportation business in Lagos State.
The organisation, in April 2023 acquired and took delivery of an undisclosed number of electric vehicles from Chinese carmaker, Yutong Bus.
OCEL is the clean energy arm of Oando Plc, largely owned by Wale Tinubu. His company had earlier signed a Memorandum of Understanding (MoU) with the Lagos State Government through the Lagos Metropolitan Area Transport Authority (LAMATA) on April 28, 2022.
Following the delivery of the vehicles to OCEL, curious Nigerians have been asking questions about the viability of electric vehicles in the country. Expectedly, this elicited a robust response from the company when it took to its twitter handle express its readiness to kick-start the novel project.
The company said: “Following our recent announcement about introducing electric mass transit buses in Lagos State, we noticed many questions about the viability of electric vehicles in our terrain, battery lifespan, and more. But don’t worry; we have got you covered!
“So, let us challenge ourselves to reach new heights, to discover new horizons, and to achieve greatness.
“For it is through our willingness to dream big and take bold action that we can create a better tomorrow for ourselves and those around us.
“Great ideas have the power to transform the impossible into the possible. They inspire us to see the world in a new light and to push beyond our boundaries.”
The company also took time to explain how the fuelless vehicles would be put to use in Nigeria. “Our electric buses can travel up to 280km on a full battery charge, which is equivalent to a round trip from Ajah to Ibadan!
“Additionally, the regenerative braking system helps the battery to last longer and reduces maintenance costs.”
Meanwhile, commenting on the acquisition and deal between the state and his firm, Wale Tinubu, who is the Chairman of OCEL, said: “The arrival of our electric mass transit buses and development of an EV infrastructure ecosystem is a reminder that the only way to remain ahead of the curve is by being unafraid to break new ground and consistently looking for opportunities to leapfrog.
“Public-Private Partnerships have been critical to getting the project to this point and will continue to fuel our expansion across the entire country.
“The commencement of this project gives us a platform to showcase to other States what is possible and open the door for engagements on bespoke solutions to suit their local needs as well as act as a model to be adopted by other organizations looking to venture into sustainable transportation.”
REA CEO Salihijo Denies Wrongdoing In Contract Award
The Director General and Chief Executive Officer of the Rural Electrification Agency (REA), Mr. Ahmad Salihijo Ahmad, has denied allegation that bothers on “breach of contract code”, raised by Donnington Nigeria Limited.
Salihijo, while responding to a petition to the Code of Conduct Bureau (CCB) by the firm denied any wrong doing.
The allegation had claimed that the MD/CEO, was a Director in Velocity Logistics and Marine Services Ltd (Velocity) while equally serving as the MD/CEO of the Rural Electrification Agency.
In providing clarification on the issue, Salihijo, said, “It became necessary to respond to this claim as it is untrue and defamatory. For the sake of clarity, I want to emphasize that my employment history had been thoroughly vetted and approved by the appropriate authorities, upon my assumption to the role of MD/CEO at the Rural Electrification Agency (REA) on the 29th of December, 2019.”
Continuing, he said, “Prior to taking on this critical role at the Agency, I had been in the private sector and had equally relinquished my position as one of the Directors of Velocity as far back as 25th of April, 2019, long before I was appointed MD/CEO of the REA.”
These details, he affirmed, are accessible and available at the Corporate Affairs Commission (CAC).
In addition, he said, as an administrator committed to serve while upholding the mandate of the Agency, he acted with the highest ethical standards and has never engaged in any behavior conflict with the interest of my position as the MD/CEO of REA.
“I am in no way privy to any and all business dealings between Donnington Nigeria Limited and Velocity as I have had no connection whatsoever with Velocity since 25th of April, 2019. It is unfortunate that this publication was made and directed to harm my reputation, defame my character and that of the agency I lead.
“I hereby demand that, the publisher and the petitioner retract this unfounded allegation, publish a rejoinder to set the records straight, and desist from further defamatory publications.
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