- Meta Platform shares fell 3% premarket on Thursday despite the earnings decline.
- The Big Tech giant beat analysts’ forecasts, but executives warned of a fourth-quarter slowdown in advertising revenue.
- The Meta is in bad shape, with its market cap on pace to lose $60 billion over the course of four trading sessions.
Meta Platform’s share price fell in premarket trading on Thursday, so earnings failed to cap a poor performance for the Big Tech giant.Thank you for reading this post, don't forget to subscribe!
Shares fell 3% after 11 a.m. Eastern time as investors reacted to the company’s third-quarter report posted after Wednesday’s closing bell.
Meta’s earnings per share of $4.39 beat Wall Street forecasts, according to consensus estimates compiled by the London Stock Exchange Group, while the company also reported better-than-expected revenue of $34.2 billion for the three months ended Sept. 30. Did.
But Meta’s CFO Susan Lee said on a call with analysts that the company had raised its revenue guidance range for the fourth quarter, citing a slowdown in ad spending and geopolitical instability in the Middle East.
“We have seen soft advertising at the beginning of the fourth quarter, related to the onset of the conflict, which is captured in our Q4 revenue outlook,” Lee said on the call, referring to the ongoing war between Israel and Hamas.
“It is difficult for us to attribute the demand softening directly to any specific geopolitical event,” he said.
Meta’s losses on Thursday threaten to continue the tech firm’s bad run this week.
The tech giant’s market capitalization fell by $37 billion between Monday and Wednesday, according to LSEG data, as investors looked at rising bond yields, the Federal Reserve’s aggressive interest rate hikes and cloud sales for Big Tech rival Alphabet. Worried about recession.
If Meta’s losses continue until the closing bell, its total valuation will drop another $23 billion, according to Insider’s calculations.