How Stitch Fix Fumbled a Make-or-Break Pivot Read Now

Meta CEO Mark Zuckerberg during an event last year. Photo by Bloomberg.
The Briefing
Facebook Entertainment Markets

Meta's Bleak Q1; Spotify's Netflix Moment

Photo: Meta CEO Mark Zuckerberg during an event last year. Photo by Bloomberg.

Score one for Meta Platforms, the company formerly known as Facebook, for accurately predicting how bad its first-quarter performance was going to be. The social media giant this afternoon reported what by any standards were dismal results, with revenue up just 7%. What’s more, Meta projected growth would be even weaker in the second quarter. For a company that increased revenue 20% in the fourth quarter, this is quite a comedown.

Admittedly, things could have been worse. When Meta first flagged the growth slowdown in early February—which it blamed variously on Apple, the economy and (by implication) TikTok—it projected that revenue could rise as little as 3%. Also, Meta’s profit per share didn’t decline as much as analysts expected, which may explain Meta shares rising 19% in after-hours trading. Then again, traders may just be sick of selling tech stocks. Pinterest shares rose 10% in after-hours trading, even though its first-quarter report revealed that North American users continue to flee that company’s social media site as though it’s a Covid-19 superspreader event (more on Pinterest’s results below).

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Briefing Markets
Musk Throws Shade at Twitter CEO (and Securities Rules)
Elon Musk. Photo by Bloomberg.
It’s day 43 in the Elon Musk–Twitter saga—and things are getting even weirder. Today we witnessed the bizarre spectacle of Elon Musk tweeting a poop emoji at Parag Agrawal after the Twitter CEO tried to clarify the company’s procedures for keeping spam bots at bay. A short time later, Bloomberg reported that Musk had told a private conference in Miami a viable deal for Twitter at a lower price...
Latest Briefs
 
BuzzFeed Reports Sharply Higher Losses in Q1
Microsoft to Boost Pay, Stock Grants for Top Employees
Warby Parker Blames Omicron For Slow Sales Growth
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
GoPuff founders Yakir Gola, left, and Rafael Ilishayev. Photos by Getty, Bloomberg.
Exclusive Venture Capital Startups
Gopuff Founders’ Ambitions Falter as Startup Bleeds Cash
Delivery firm Gopuff emerged as one of the hits of the pandemic shutdowns, fetching a $15 billion valuation thanks to its network of couriers delivering snacks and convenience items like chips, Tylenol and laundry detergent.
IRL CEO and Co-founder Abraham Shafi. Art by Mike Sullivan
Exclusive Startups
SoftBank-Backed Messaging App IRL Says It Has 20 Million Users. Some Employees Have Doubts About That
IRL, a four year old social app, appears to be a fast-growing alternative to Facebook and messaging app Discord.
Photo by Bloomberg. Art by Clark Miller.
The 1:1
‘I Don’t Know How Steve Jobs Would Survive Today in This Environment’: Tony Fadell Has Opinions to Share and Scores to Settle
Within Silicon Valley power circles, being “on the beach” is a euphemism that covers a continuum of unemployment, from “retired rich” to “brief pause between high-powered jobs.” Tony Fadell has been metaphorically on the beach for six years, ever since leaving Google, which paid $3.2 billion for Nest Labs, the maker of smart thermostats he co-founded, in 2016.
Traders on the floor of the New York Stock Exchange. Photo by Bloomberg.
These Enterprise Software Firms Are Top Targets for Private Equity Takeovers
Big deals are on the way. The sharp drop in tech stocks over the past six months, making companies cheaper to buy, is likely to trigger an increase in merger activity, bankers say.
Elizabeth Spaulding, CEO of Stitch Fix. Photo by Bloomberg.
Exclusive E-commerce
How Stitch Fix Fumbled a Make-or-Break Pivot
Stitch Fix planned to revive sales growth by turning its original strategy on its head. Inside the company, there were warning signs that the effort would struggle.
Chainalysis CEO Michael Gronager on Feb. 24, 2022. Photo: Bloomberg
Exclusive Crypto Venture Capital
Chainalysis Valued at $8.6 Billion in GIC-Led Investment
Chainalysis, a startup that sells services to detect and track crypto fraud, has raised a new round at an $8.6 billion valuation, including the investment, according to a person with direct knowledge of the matter.