Facebook and Instagram’s parent company Meta posted its first revenue drop in history on Thursday, driven by lower advertising spending as the economy weakens and competition from rival TikTok intensifies.
Shares of the company fell slightly in after-hours trading following the results, suggesting Wall Street had widely expected the earnings report to be weak.
The company posted earnings of $6.69 billion, or $2.46 per share, in the April-June period. That’s down 36% from $10.39 billion, or $3.61 per share, in the same period a year ago.
Revenue was $28.82 billion, down 1% from $29.08 billion a year earlier.
Analysts on average had expected earnings of $2.54 a share on revenue of $28.91 billion, according to a poll by FactSet. Shares of Meta Platforms Inc. fell 58 cents to $169 after hours trading.
(Edited by : Sangam Sing)
First post: STI