Down 52%, Can Meta Platforms Stop the Bleeding?
Meta Platforms (NASDAQ: META) has had a rough year and is grappling with several headwinds simultaneously that have its stock down 52% from highs set last October. Those headwinds include policy changes that reduce the effectiveness of its targeted advertising, consumers changing social media preferences, and a struggling economy that has some companies reducing their advertising budgets for now. The company is also investing heavily in expanding its metaverse offerings and the cost is having a short-term effect on Meta's bottom line.
The stock is down as investors try to determine how these headwinds and others might affect the profitability of the social media giant. Those investors will get an update on the effect when Meta reports fiscal 2022 second-quarter earnings after the markets close on Wednesday, July 27. Here's what to look for in that release.
The headwinds mentioned above worked together to slow Meta's revenue growth in its first quarter. Meta reported sales of $27.9 billion in Q1, representing a 7% increase from the year-ago period. That 7% increase represents a significant deceleration, consider that the company has grown revenue at a compounded annual rate of 41.3% over the last decade.
Source Fool.com
