1 Big Red Flag From Meta's Earnings Report
Shares of Meta Platforms (NASDAQ: META) slipped on Thursday, following the Facebook parent's second-quarter earnings report. Investors were spooked as the company's revenue trend went negative, missing analysts' average forecast for the quarter. Even more, management's guidance for the third quarter was also below expectations.
With a performance like this, it's not surprising to see weakness in the stock on Thursday. But it may be more than these numbers that are prompting a cautious view toward the stock. There was one specific comment in the company's earnings call that provided a particularly gloomy picture of Meta's business trends.
Explaining the company's 1% year-over-year decline in revenue and management's outlook for an even worse revenue decline in Q3, Meta Chief Financial Officer Dave Wehner said that the current economic environment is weighing on the tech company's performance.
Source Fool.com
