The stock movement likely had much to do with valuation, but Meta's business is still struggling.
Pinterest's (NYSE: PINS) stock price dropped 5% on Feb. 7 following its fourth-quarter earnings report. Its adjusted net income fell 40% to $203 million, or $0.29 per share, which still cleared the consensus forecast by a penny. For the full year, Pinterest's revenue increased 9% to $2.8 billion as its adjusted net income dropped 45% to $426 million.
Snap (NYSE: SNAP) makes some money each year from its Spectacles camera glasses. Meta Platforms (NASDAQ: META) generates some revenue each year from its business segment that focuses on the metaverse. Its details like this about how these social media giants generate revenue that can influence investors' enthusiasm for each stock.