Meta has forecast current quarter revenue below estimates after the Facebook-parent recorded its first ever quarterly drop in revenue, amid a general weakness in the digital ad market.
Shares of the Menlo Park, California-based company were down about 5 per cent in extended trading.
The company said it expects third-quarter revenue of between $26 billion (€25.5 billion) and $28.5 billion. Analysts were expecting $30.52 billion, according to IBES data from Refinitiv.
Meta's earnings further underscored an inflation-induced slowdown in the digital ad industry, which has been booming for decades as companies tapped the power of the internet to reach consumers.
Cutting off family members: ‘It had never occurred to me that you could grieve somebody who was still alive’
The bird-shaped obsession that drives James Crombie, one of Ireland’s best sports photographers
The Dublin riots, one year on: ‘I know what happened doesn’t represent Irish people’
‘I know what happened in that room’: the full story of the Conor McGregor case
Meta has been trying to fend off a string of challenges to its business, including stiff competition from TikTok and Amazon for ads and a revenue hit from Apple’s privacy changes to mobile operating system iOS.
For the second quarter ended June 30th, Meta said total revenue, the bulk of which comes from ads, fell to $28.82 billion from $29.08 billion a year earlier.
Net income fell to $6.69 billion, or $2.46 per share, from $10.39 billion, $3.61 per share, a year earlier. — Reuters
