Why Meta Platforms Stock Was Down More than 20% Earlier Today
Shares of Meta Platforms (NASDAQ: META) were trading down 22% at 11:35 a.m. on Thursday after the company delivered third-quarter financial results. The social media giant beat the Street's revenue estimates but missed on earnings.
Based on analysts' comments following the earnings report, the problem is not so much the weak numbers as management's plan to continue aggressively investing in growth initiatives, such as the metaverse, instead of firming up the bottom line.
After posting a 1% year-over-year increase in revenue last quarter, Meta saw revenue decline 4% this quarter. Wall Street is looking at the slowing economy and advertising market, which is what social media companies use to make money, and not seeing much growth over the next year. That's why the stock is down 70% this year, in a nutshell.
Source Fool.com
