Sales Fall for the First Time in Meta's History
Meta Platforms (NASDAQ: META) announced its fiscal 2022 second-quarter earnings after the markets closed on July 27. The social media giant reported its first-ever decline in revenue. Meta faces several headwinds, including privacy policy changes from Apple, a slowing economy, and the Russian invasion of Ukraine.
It's all boiling down to advertisers becoming less willing to spend money on Meta's platforms. As a result, Meta's shares sank 6% on the day following the announcement of its financial results. Let's examine the quarter in more detail.
In its second quarter, which ended on June 30, Meta's revenue decreased by 1%. While this was the company's first year-over-year revenue decline since going public, it was up against a tough comparison: Sales skyrocketed 56% in the prior-year period. Considered in this light, the drop is not as bad as it appears. Still, it's not great news and magnifies the difficulty Meta has had adjusting to several headwinds.
Source Fool.com
