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.
Lorcan Sirr: This is a housing strategy written by Flann O’Brien
‘I don’t know what happened my money’: Students who paid to study in Ireland left in limbo
Chinese diplomats and Barbados ambassadors: Who have Irish MEPs been meeting?
Sky Television’s treatment of older customers leaves readers at a loss
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
