“Big Tech Shock” Meta Stock Price Falls 20%
Following Google and Microsoft, even the meta-platform (hereinafter referred to as Meta), which operates Facebook, has released a half-cut net profit, leading to a “big-tech performance shock.”
Shares of Meta plunged nearly 20 percent in after-hours trading on the 26th (local time).
On the same day, Meta said sales fell 4% from the same period last year to $27.714 billion and net profit plunged 52% to $4.395 billion.
Earnings per share (EPS) was only $1.64.
This is because the number of users has only increased slightly and the amount of digital advertising orders has decreased significantly due to signs of an economic slowdown.
In addition, sales of the reality lab division, which is in charge of metaverse business, the new growth engine of metaverse, nearly halved from a year ago to $285 million.
The deficit widened from $2.63 billion to $3.67 billion. Meta Stock
The bigger problem is that Meta’s sales will continue to decline in the fourth quarter.
Meta expects sales to reach $30 billion to $32.5 billion in the fourth quarter.
Meta Platforms, Inc. is an American IT company founded in 2004 under the name Facebook Inc. headquartered in Menlo Park, California.
The founders are a number of partners, including current CEO Mark Zuckerberg.