Description: Meta – that company you probably still think of as Facebook – scared off investors this week, with projections of weakening revenues and higher costs. The market quickly cast its verdict, driving the market value of Meta down $200 billion. It appears that the metaverse might be a costly venture. Analyst Debra Aho Williamson says that “there’s a lot of uncertainty about Meta’s investments in the metaverse and if or when they will have a positive impact on the company’s bottom line.”

Date:  February 3, 2022

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/facebook-meta-earnings-1.6337959

Discussion points:

1) How closely have you been following this Meta/Facebook transformation story ?

2) Have you or any of your classmates changed your Facebook usage pattern after hearing the disturbing accounts of Frances Haugen?

3) Chapter 11 of Wiley’s Financial Accounting: Tools for Business Decision Making, provides a description of the journal entries we use for recording stock dividends. How does the market price of a stock work into the recording of stock dividends?