 Okay, I hope you're doing well. It is Thursday, 3rd of February, and of course I had to jump on and say a quick word about Metta or Facebook after their shares got absolutely slammed in aftermarket trade yesterday. So there's plenty of memes going round about Zuckerberg at the moment, but I wanted to get up to speed on some of the main numbers and why there's been such a dramatic drop in their shares. So let's take a look at this. This is the aftermarket session last night when their numbers hit the tape. In fact, I couldn't do it quick enough to capture really the bottom, where they were down as much as 23%. I must also say that in pre-market trade now, some early indications would say they're off these worse levels, but only by a couple of percentage points. So still looking for a deep negative open for Facebook on the street later on today. So you can see here the stock price trading close proximity to 250 bucks, having traded 3.25 prior to the earnings coming out last night. So what exactly was the rationale here? What were the numbers and what is it that investors are so worried about with Facebook? So a couple of things, looking at the actual quarter and how they performed. First off, their revenues actually came in just slightly above expectations. In fact, at 33.67 against 33.43 billion, their EPS though was amiss at 367 against $3.84. Those numbers not so much to focus though. What the market was really concentrating on are metrics such as DAUs and MAUs, which is daily and monthly active user numbers. Because of course then, this is where they derive most of their incomes from advertising and active users are absolutely critical for them to continue to make money. And the daily figure came in below expectations of 1.95 billion at 1.93. We'll look at those and we'll circle back to that in a moment. The other thing is obviously there's a lot of conversation of course brought about by the shift from Facebook to Metta. Of course, as they positioned themselves for web three and so forth. And their reality labs operating loss was a pretty sizable 3.3 billion dollars. And actually, I saw some interesting comments that the new disclosure of reality labs segments operating loss as overall was 10.2 billion for 2021. And analysts on the tech side are suggesting that that's gonna point to at least a 10 percentage point drag on overall operating margin, which could obviously get worse than near to medium term. Because as we're gonna look at, as the demographics are shifting quite violently against Facebook and there's multiple other challenges that they're facing through pandemic currency headwinds, through the regulatory environment, through Apple's operating software and the ability for them to be able to target through the advertising model. There's gonna be a massive emphasis for them to try and really push in to get ahead first to market advantage if you like in some ways, given the user size of the user base for this positioning of the Metaverse. The problem is that's super expensive. And as then just mentioned there, what it is gonna lead to most likely is that overall operating margins are gonna change quite dramatically. So it's another burden pressure point for the company going forward. The outlook was pretty disastrous. They see Q1 revenues at 27 to 29 billion. The street was looking for over 30. And they see year on year growth in Q1 to be impacted by headwinds, both to impression and price growth. So double whammy. Now, one of the key interesting metrics that obviously a lot of people look at are daily active users that I mentioned. And this is a super interesting graphic because it starts to break down by geographic area. So not only can we see the total number, which as you can see here has definitely plateaued at 1.93 billion. What you can see is the rest of the world and also US and Canada, those numbers, albeit to a small degree, have declined. But important is they've declined here for the first time in those key regions. And that's what makes people particularly nervous. So we've actually declined in some of their key areas. And looking at this on a different basis, this goes back to the last 10-year performance of, I was looking at last night, monthly active users on Facebook. And you can see here, there is the context of course as well that competition is another major challenge that the company needs to confront, which we'll get to in a moment. And obviously as the market starts to become saturated of users who have access to mobile applications and so forth and internet connection, obviously this number will start to slow. But you can see here, these numbers have been declining quite rapidly, continuously for a long period of time. And the other thing, of course, that's really challenging for them at the moment is teen and young adults daily active users. They've actually, if you look at that demographic segment of the DAUs or MAUs, they've been declining pretty much for a decade. I mean, we all know, right? I mean, who uses Facebook apart from your uncle and your auntie and maybe your grandma. So this is a big problem for them. And hence a lot of rationale with the pivot, particularly coming on the back of all that negative press last year about how that algorithm specifically targets and can create mental harm to young individuals. So this is really where it gets interesting because the CFO on the conference call covered a number of points, challenges that the company faces. On the impression side, he said that they continue to face headwinds of growth, increased competition for people's time and a shift of engagement within their apps to things that are more akin to what young people use, like TikTok. So moving away from those more traditional news-based type feeds into something more short and snappy in the form in which they're delivered. Apple's iOS changes were not in effect. And so the company, according to the CFO, anticipate modestly increasing act targeting and measurement headwinds from platform and regulatory changes. So they're still to come. And then they're hearing from advertisers, this is what the CFO said, that macroeconomic challenges like cost inflation and supply chain disruptions, they're continuing to have an impact on companies' abilities to advertise. So advertiser budgets are being pressured at the same time as well. And then there's the foreign currency headwind to year over year growth. So as you can see here, there's a whole list of things that have really contributed to why there's been such a bearish reaction to their shares. I think Mark Zuckerberg was also on the conference call last night and he really summed it up. He said, people have a lot of choices on how they want to spend their time. And apps like TikTok are growing very quickly as everyone knows. And he warned on the call that competition would put short-term pressure on metas advertising business. And remember that comes, as I said, as operating margins are gonna be pressured as they try to really hyperspeed because out of necessity, they push into their reality labs division and some of those other areas that would be facilitating the structure around their web three and metaverse idea. Quite hilariously, the calls on Wall Street, you can see here, there's a lot of jokes going around last night. This is all of the major analyst teams from across the street. And when they're asked about what their current rating is, buy, hold, so forth. Nearly every analyst on the street has a buy rating on Facebook at the moment. And yeah, it just goes to show you shouldn't put all of your trust in what these analysts say because it doesn't always materialize. But yeah, on that point, I hope that was useful. Just a super quick update. And yeah, remember to subscribe to the channel. If you like what you hear, we've got more things coming out. In fact, I'm gonna jump on later and do a Bank of England one on the macro front as well. So I'll see you then. Thanks very much.