Following the release of the company’s poor third-quarter results report, Meta Platforms shares (META stock) took a beating as a result of a difficult advertising market.
META Stock Price Prediction
Wall Street may have reached the end of its tolerance for Meta’s (NASDAQ:META) corporate strategy, judging on the stock market’s devastation. The company’s intentions to significantly increase expenditure on the metaverse and other projects in 2023 have plainly alarmed investors.
Following results from Microsoft (MSFT) and Alphabet (GOOG) on Tuesday, the disappointing results from the parent company of Facebook, Instagram, and WhatsApp make three consecutive quarters of weak earnings reporting from the tech mega caps (GOOGL). Apple AAPL -2.07% and Amazon AMZN -2.77% both release earnings reports on Thursday in the afternoon.
For its third quarter, Meta reported revenue of $27.7 billion, roughly in line with Street expectations and down 4% from a year earlier but up around 2% in constant currency. According to Meta’s projection, revenue should range from $26 billion to $28.5 billion. In the quarter, Meta earned $1.64 per share, far behind the $1.90 per share Street consensus.
Throughout the course of the company’s quarterly conference call, Meta (NASDAQ:META) offered investors little solace regarding the prospects, and the stock fell sharply. After falling 5.6% during Wednesday’s normal session, the stock was down 19% when the call came to an end. In Thursday’s premarket trading, shares fell 24%.
For Meta (NASDAQ:META) and the stockholders of the company, this has been a difficult year. TikTok and other companies are now a rival. Along with persistent ad-targeting challenges brought on by Apple’s heightened emphasis on iPhone user privacy concerns, the monetization of Reels has been underwhelming, all in the midst of a weakening global economy. And the majority of investors are still pessimistic about the future of the metaverse.
Featured Image- Unsplash @ Dima Solomin