When Paypal (NASDAQ:PYPL) said it would not buy Pinterest (NYSE:PINS), the Trump SPAC (through DWAC) set a negative stage for both Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR). Both firms reported quarterly results last week.

Twitter is struggling but Facebook’s company brand re-naming sends mixed signals. The company called its corporation Meta, to denote metaverse. Facebook timed the re-branding at a critical phase of its business. Whistleblowers are tarnishing the company’s business. The endless skepticism on Facebook, Instagram, and WhatsApp’s negative impact on society could hurt advertising revenue.

Investors should not look at the Meta pivot as positive. It will cost billions in investments and could take over a decade to pay off. Virtual reality headsets are not catching on, either. This would hurt Facebook’s Oculus endeavors.

Q3 Results

In Q3, Facebook reported impressive revenue growth. It rose by 35.1% Y/Y to $29.02 billion. EPS was $3.22 a share. The site showed modest signs of strain. Monthly active users were 2.91 billion, compared to the 2.92 billion consensus estimates. In Q4, Facebook expects revenue of up to $34 billion. Facebook expects uncertainties from Apple’s iOS 14 privacy changes. Macroeconomic headwinds and the loss in Covid-related stay-at-home trends may hurt the site’s popularity.

In 2022, expenses of up to $97 billion will weigh on the stock. FB stock is a hold for now.