The tech had a bad day in the office!!
Company posts second consecutive quarter of declining revenue and warns of rising costs, accelerating losses at metaverse unit
Shares of Meta Platforms slid on Thursday morning to levels not seen since 2016!
Tweet on Meta’s share fall after disappointing earnings
Facebook Parent Meta Stock Sheds 25% After Quarterly Earnings Miss
— The_Journalbiz (@the_journalbiz) October 27, 2022
Bloomberg: Meta touches new low on the market
Meta Platforms Inc. lost more than one-fifth of its market value Thursday after the company reported a drop in quarterly revenue, warned of climbing costs and said losses will accelerate next year at the unit leading the charge on its metaverse ambitions.
Shares of Meta were down 24.4% to $100.78 in recent trading, wiping out nearly $80 billion of the, company’s market value and returning to levels not seen since 2016.
The stock has dropped around 70% in 2022.
Meta’s revenue dropped 4% in the recently ended quarter, its second consecutive quarter of declining revenue, as the social-media giant battles growing competition from rival TikTok and fallout from Apple Inc.
Tightening macroeconomic conditions are weighing on advertiser spending, the company said, and the strong dollar also hit revenue.
Those challenges come as Meta Chief Executive Officer Mark Zuckerberg pushes forward with his expensive pivot to the metaverse, an endeavor that has already cost the company billions.
Meta Chief Financial Officer David Wehner said Wednesday that losses at the unit, Reality Labs, will grow significantly next year. After that, he said, the company plans to pace investment in Reality Labs and focus on growing the overall company’s operating profit.
Oppenheimer analysts called the guidance “very disappointing”, while Deutsche Bank analysts said it was “the wrong number at the wrong time for investors.”