META stock was trading at $134.97 as of 11:14 AM EDT.
As with previous quarters this year, key lead-in reports from rivals are causing investors to decrease expectations for the online advertising market. Meta Platforms (NASDAQ:META) is scheduled to report its third-quarter earnings after the closing bell on Wednesday.
After reporting the lowest revenue growth rate in its history despite positive user growth, Snap stock (NYSE:SNAP) fell 28% on Friday. The stock of Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), which missed revenue projections due to declining YouTube and Google Network income, also dropped on Tuesday afternoon.
This suggests that Meta’s ad sales will also slow down, slowing for the second consecutive quarter. According to analyst expectations, third-quarter revenues will be $27.4 billion, down 5.5% from the same period last year, and adjusted profits per share will be $1.85, a 43% decrease.
Cutbacks have been the only thing that those forecasts have seen in the interim. In the past three months, there have been 46 times more downward adjustments to revenue predictions than upward revisions, and 38 more downward revisions to EPS forecasts than upward revisions.
Meta Stock Analyzed
On Monday, BofA analyst Justin Post downgraded Meta again, moving the company from Buy to Neutral, and cited Snap’s sales problems as one reason. He anticipates “advertiser budget cuts in early 2023 to impact on mood and cause added uncertainty about post-IDFA reforms and Reels transition,” despite lower predictions for Q4 and 2023.
Additionally, Brad Gerstner of Altimeter Capital wrote an open letter to Meta CEO Mark Zuckerberg and his board on Monday pushing them to reduce personnel by at least 20%, reduce yearly capital expenditures by at least 16%, and limit investment in the metaverse to roughly $5 billion at most.
The Causes Of Monday’s Volatility In Meta Stock
Featured Image- Unsplash @ Dima Solomin
Author Jowi Kwasu 
