Shares of Meta, Facebook’s parent company, tumble after dismal earnings report: NPR

Meta’s share price tumble on Thursday was the market’s reaction to news that a slowdown in digital advertising, new security protocols on Apple devices and a bet on the metaverse all hurt the company’s bottom line. parent company of Facebook. In particular, investors criticized Meta CEO Mark Zuckerberg, seen here, for spending a lot of money on the Metaverse.

Michael Nagle/Bloomberg via Getty Images

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Michael Nagle/Bloomberg via Getty Images

Meta’s share price tumble on Thursday was the market’s reaction to news that a slowdown in digital advertising, new security protocols on Apple devices and a bet on the metaverse all hurt the company’s bottom line. parent company of Facebook. In particular, investors criticized Meta CEO Mark Zuckerberg, seen here, for spending a lot of money on the Metaverse.

Michael Nagle/Bloomberg via Getty Images

Shares of Facebook parent company Meta fell on Thursday after reporting a dismal third quarter.

By Thursday’s market close, shares of the tech company had fallen nearly 25%, selling for less than $98 apiece, a level not seen since 2016.

So far this year, Meta’s stock has fallen about 70%. It is now worth around $270 billion, about a third of its market capitalization of just under $900 billion a year ago.

Markets are reacting to news that a slowdown in digital advertising, new security protocols on Apple devices and a bet on the metaverse have all hurt Meta’s bottom line. Revenue fell 4% in the three months from July to September from a year earlier, from $29 billion to $27.7 billion, the company said Wednesday.

A strong US dollar has also been bad for global companies like Meta. Based in the United States, their products and services, which cost less in other currencies, generate less profit at home.

It’s been a particularly bad week for technology.

Alphabet, Google’s parent company, which announced its results on Tuesday, also struggled amid a slowdown in digital ads. Google advertising revenue was $54.5 billion in the three months from July to September, up from $56.3 billion in the previous quarter.

Microsoft recorded its slowest growth in five years.

But Meta’s woes run deeper than those of his fellow tech titans, as he invests heavily in a future called the Metaverse – a new space built around virtual reality and artificial intelligence.

“I think our work here is going to be of historic significance and lay the groundwork for a whole new way of interacting with each other and integrating technology into our lives,” Zuckerberg said during a call for investors on Wednesday.

While Zuckerberg reported layoffs across most teams to counter the losses, the CEO said hiring would increase in other “high priority” areas, namely to grow the metaverse.

Investors have criticized Zuckerberg for spending a lot of money on an idea that isn’t fully fleshed out despite his optimism about his investment.

“The tighter prioritization, discipline and efficiency we are driving across the organization will help us navigate the current environment,” he told investors on the call.

More Meta shareholders sold shares during the day Thursday.

Snap shares fell 30% last week after the social media company, which is smaller than giants Meta and Alphabet, missed earnings estimates.