Meta stock plunges 11% as quarterly revenue falls for a second straight time
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Meta Shares Plunge 11% as Quarterly Revenue Drops to $29 Billion for Second Consecutive Time – Facebook Mom Lost $650 Billion in Market Valuation So Far this Year
- Meta’s quarterly report sent on Wednesday shared over 11%
- Sales fell for the second consecutive quarter and is expected to decline again
- Facebook’s parent company is plagued by falling ad spend and rising costs
- They said they expect their workforce to stop growing, and revenue growth from major advertisers “seems challenging”
- The company said they had 1.98 billion users, a 3 percent increase
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Shares of Facebook parent company Meta fell sharply on Wednesday after the company reported declining revenue for the second quarter in a row and forecast another revenue decline for the last quarter.
The company’s disappointing quarterly results after the closing bell drove an 11.5 percent drop in after-hours trading.
Meta, a titan of the online advertising world, is facing a wider slowdown in ad spend as companies cut costs, as well as increased competition from TikTok and strict new privacy settings from Apple.
Third quarter revenue fell to $27.71 billion, down 4 percent from a year ago, but slightly better than analysts’ expectations, according to Refinitiv data.
Shares of Facebook parent company Meta fell sharply on Wednesday after the company reported declining revenue for the second quarter in a row
The company forecasts fourth quarter revenue of between $30 billion and $32.50 billion, compared to analyst estimates of $32.20 billion.
Net income fell to $4.40 billion, or $1.64 per share, from $9.19 billion, or $3.22 per share, a year earlier.
“While we face near-term revenue challenges, the foundations are in place for a return to stronger revenue growth,” Meta founder and CEO Mark Zuckerberg said in a statement.
“We are approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and become an even stronger company.”
“While we face near-term revenue challenges, the foundations are in place for a return to stronger revenue growth,” said Meta Founder and CEO Mark Zuckerberg
Meta’s stock price has fallen nearly two-thirds since the beginning of the year, wiping out the company’s market cap by about $650 billion.
“There will be some who say that the 62 percent drop in Meta’s share since the start of the year has gone too far, and it’s true that the tech giant still has massive scale thanks to its billions of active users,” said Sophie. Lund-Yates, Principal Equity Analyst at Hargreaves Lansdown.
“The problem is that the economic ditch that separates Facebook and Instagram from its rivals is narrowing, with no clear path forward for further successful monetization of its other apps and products, and that could very quickly turn into a very big problem.” she added. .
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