Earnings miss expectations, leading stocks crash after crash, cosmic bubble pricked?
2022-07-05 0 By
Analysts believe that tech bubbles often occur during the concept phase, and if companies can make it through the concept phase into growth, these tech bubbles will eventually be rationally suppressed, allowing valuations to quickly return to reasonable levels.Is the bubble of the meta-universe about to burst?Roblox, known as the “first stock in the universe,” closed down 26.51% on Feb. 16, following a 26.39% one-day plunge in Meta betting.On the news, Meta and Roblox both saw their shares plunge a day after the release of earnings, which may have been “trampled” by the market due to disappointing results.Interviewed, however, experts say, yuan universe leading shares tumbled is normal, because the yuan is still in concept stage, the universe to accelerate the construction pace of the universe, must speed up the 5 g, cloud computing, distributed storage, artificial intelligence, big data, Internet, digital twin, virtual reality, chain block and a series of advanced information technology, the depth of the fusion head enterprises need through the concept stage,Build a recognized business model.The leader stock plunges the meta Universe leader stock plunges again!After the close of trading on Feb. 15, Roblox announced its fourth-quarter and full-year 2021 results.The results may have missed market expectations, sending Roblox shares down 15 percent after hours on February 15, hitting a current low of $53.08.By the end of the market on Feb. 16, Roblox had plunged 26.51% in a single day to $53.87.Roblox reported an operating loss of $495 million and a net loss of $491 million in 2021.In the fourth quarter of 2021, Roblox’s revenue rose 83% year-over-year to $569 million, but still fell short of analyst expectations of $772 million.Net loss per share attributable to shareholders of $0.25, missing analysts’ expectations of a net loss per share of $0.12;Gross bookings rose 20% year over year to $770.1 million, missing analyst expectations of $772 million.Roblox shares tumbled after the earnings loss and missed expectations, and investment banks cut their price targets on the stock.Morgan Stanley analyst Brian Nowak downgraded Roblox to “equal weight” from “overweight” and lowered his price target to $65 from $115.The analyst said the company daily active users continuous decline in North America and in the fourth quarter of this year in January “disappointing” global results show that from November to January of last year, the company’s growth is deteriorating, which suggests that economic reopened brings greater resistance to the platform, the uncertainty of growth more than previously expected.Roblox wasn’t the only company whose stock tanked after missing expectations. Facebook parent Meta Platform, which is betting on the meta-universe, reported its fourth-quarter 2021 earnings on Feb. 2.Meta shares plunged 26.39% to $237.76 on Wednesday, the biggest one-day drop since the company went public in 2012, as earnings came in significantly below market expectations.Meta reported revenue of $33.671 billion in the fourth quarter, slightly ahead of analyst expectations of $33.43 billion, but earnings per share of $3.67 fell short of expectations of $3.84.The number of active households in the four seasons of 2021 was 1.93 billion, below analysts’ expectations of 1.95 billion.Monthly active households totaled 2.91 billion, below analysts’ expectations of 2.95 billion.In addition, Meta’s Reality Labs division, which focuses on VR/AR technologies and products, reported losses of $4.5 billion in 2019, $6.6 billion in 2020 and $10.2 billion in 2021. Meta expects operating losses to “significantly increase” in 2022.”This is one of the reasons why the capital market doesn’t buy its’ meta-cosmic concept, ‘” Yu Jianing, executive director of the China Mobile Communications Federation’s Meta-cosmic Industry Committee, told The International Financial Times.According to Yu Jianing, the main reasons for Meta’s stock price plunge are as follows: First, Meta reported lower earnings than expected, losing 500,000 daily active users in the fourth quarter of 2021, the first sequential decline in daily active data;Institutional investors appear to be pulling out of hot tech stocks in the face of a series of expected federal Reserve rate hikes this year.Finally, in the face of lower-than-expected income and increasingly risky market, some capital will choose to sell stocks now to reduce risk by placing too much emphasis on short-term gains.Is still in concept stage for yuan universe leading shares have plunged, ministry of information and communication of economic experts committee, executive director of digital economy research institute at zhongnan university of economics and plate and analysis of the international financial newspaper reporter Lin pointed out that in fact shares tumbled is normal phenomenon, every a new trend of science and technology experience concept period, growth period and mature period.However, technology bubbles often occur in the concept phase. If the relevant companies can pass through the concept phase and enter the growth phase, these technology bubbles will eventually be suppressed rationally and the valuation of the relevant companies will quickly return to a reasonable level.”Yuan technology trend of the universe is not a single, but an extension of the existing multiple technology trends, yuan universe at this stage in the form of games, social networking, so the system need to put in a lot of prospective Settings, such as economic system rules, if there is no perfect economic system, there is no perfect way of digital assets property rights confirmation, data security and information security is not pass,It would be difficult to move to the next phase of the meta-universe.In addition, the universe is still dominated by traffic. Whether users will eventually flow into the universe and participate in the construction of the universe depends on whether the creators of the universe have enough creativity.”Pan and Lin said.Yu Jianing believes that the current market in the “true and false meta-universe” project, by the concept of the meta-universe speculation of the company emerges in an endless stream, ordinary investors can not do effective screening.He reminded investors that the construction of the meta-universe is at an early stage, and there are high risks associated with equity assets.If we ignore the law of technological development and hype relevant concepts unrealistically, it will delay the development and construction of the metasomes and the implementation of their applications.Yu pointed out that the key to promoting the development of the meta-universe also needs underlying technological innovation and infrastructure construction.The first is the entrance of the metaverse, that is, the level of user access, which involves the popularization of access terminals and the construction of high-speed and low-delay networks.For existing terminals, the existing VR/AR terminal technology is not enough to support people’s long-term immersive experience in the meta-universe, either in terms of comfort to wear or performance of the terminal itself.5G network and satellite Internet are also important technologies for the rapid development of the meta-universe to ensure the stability of access and universal coverage. However, 5G applications are still in the exploratory stage, and satellite Internet is not enough to carry the global integrated communication network of heaven, earth and sea.These all require further technological breakthroughs and infrastructure development.Secondly, there should be enough computing power and data storage space.The future meta-universe will be a digital space large enough to accommodate countless people to use in parallel. The amount of data will explode, and the existing cloud computing system cannot carry it. Therefore, the further application of cutting-edge technologies such as edge computing and distributed storage is needed to realize the transformation of the Internet to the “cloud + edge + end” architecture.Thirdly, the mapping of the physical world to the digital world requires further construction and breakthrough of digital twin, 3D scanning, Internet of things, industrial Internet and other technologies as well as corresponding infrastructure.Finally, there is the development of applications in the meta-universe, where artificial intelligence, intelligent robots, big data and blockchain technology will be key.”Therefore, to build the complete yuan ecology, the universe must speed up the 5 g, cloud computing, distributed storage, artificial intelligence, big data, Internet, digital twin, virtual reality, chain block and a series of advanced information technology, the depth of the fusion applied to promote integrated innovation and fusion, speeding up to build new infrastructure, to promote the depth of the digital economy and real economy,We hope to accelerate the construction of the metasverse.”Yu Jianing said.Reporter: Yu Jichao editor: Yao Hui Responsible editor: Bi Dandan