Facebook: Meta's Q4 2021 Capex Stands at $5.5bn- Also Loses $200b in Valuation

Meta, formerly known as Facebook, has released its Q4 2021 financial reports. The report shows that the social media giant has spent $5.5 billion on capital expenditure in Q4 2021. The investment was in servers, office facilities, data centers, and network infrastructure. The company has invested heavily in its infrastructures despite seeing a drop in the users of Facebook for the first time in its history. Moreover, the drop in the number of users on the platform has led the company’s shares to fall by over 20%. This significant drop means Meta has lost $200 billion in valuation.

According to Meta, the daily active users on Facebook fell to 1.929 billion from 1.930 billion in Q4 2021. This is the first time it has seen a drop in daily active users in its 18-year history. Furthermore, Apple’s OS’ privacy changes that have limited Facebook’s ability to monitor users and target them in ads could have significant effects. The chief financial officer at Meta, Dave Wehner, said the changes could cost Meta up to $10 billion this year. Meta also plans to spend up to $34 billion on capital expenditure this year. It aims to invest in data centers, servers, and AI.