Meta Platforms Reports First-Ever Revenue Drop. Should You Sell The Stock?
Facebook parent Meta Platforms (NASDAQ: META) has been a growth stock juggernaut. It's gone from a start-up founded by a teenager in a Harvard dorm room to a digital advertising behemoth that was worth more than $1 trillion at one point.
However, Meta's growth story is cracking right in front of us. For the first time ever, the company reported a quarterly decline in revenue in its Wednesday earnings report. In the second quarter, the top line slipped 0.9% to $28.82 billion, just shy of analyst expectations at $28.94 billion. On a constant currency basis, revenue would have increased 3% as the stronger dollar added to the headwinds.
Profits fell sharply in the quarter as the company continued to invest in new products like Instagram Reels and Reality Labs, its virtual reality division, and earnings per share dipped from $3.61 to $2.46, missing estimates at $2.61. The stock finished Wednesday's after-hours session down 4.7%
Source Fool.com
