Meta shares drop 20% on Q4 earnings miss, weak outlook
This is from Mark Zuckerberg&#x27;s post. I think it&#x27;s a decent explanation of their performance. Historically Facebook always made these longer-term bets and they&#x27;ve typically paid off.<p>&quot;Before I get to that, I want to briefly touch on our Q4 results, which I know Sheryl and Dave are going to go deeper on. I&#x27;m proud of the work our teams did here. We shipped products, our community continued to grow, and businesses of all sizes turned to us to help them reach people. But there are two things that I want to call out that are having an impact on our business.<p>The first is competition. People have a lot of choices for how they want to spend their time and apps like TikTok are growing very quickly. And this is why our focus on Reels is so important over the long-term. As is our work to make sure our apps are the best services out there for young adults, which I spoke about on our last call.<p>The second area, and related to this, is that we&#x27;re in the middle of a transition on our own services towards short-form video like Reels. So as more activity shifts towards this medium, we&#x27;re replacing some time in News Feed and other higher monetizing surfaces. So as a result of both competition and this shift to short-form video as well as our focus on serving young adults over optimizing overall engagement, we&#x27;re going to continue to see pressure on impression growth in the near term. Now I&#x27;m confident that leaning harder into these trends is the right short-term tradeoff to make in order to get long-term gains. We&#x27;ve made these types of transitions before with mobile feed and Stories, where we took on headwinds in the near-term to align with important trends over the long term. And while video has historically been slower to monetize, we believe that over time short-form video is going to monetize more like feed or Stories than like Watch – so I&#x27;m optimistic that we&#x27;ll get to where we need to be with Reels too.&quot;