Current:Home > StocksFacebook parent Meta is having a no-good, horrible day after dismal earnings report -ProgressCapital
Facebook parent Meta is having a no-good, horrible day after dismal earnings report
View
Date:2025-04-27 12:23:38
Facebook parent company Meta's stock plummeted on Thursday, following its announcement of a dismal third quarter.
At market close on Thursday, shares in the tech company had fallen nearly 25%, selling for under $98 apiece, a level not seen since 2016.
So far this year, Meta's stock has fallen by about 70%. It's now worth around $270 billion, roughly a third of its market capitalization of just under $900 billion a year ago.
The markets are reacting to news that a slowdown in digital advertising, new security protocols on Apple devices and a bet on the metaverse have all hurt Meta's bottom line. Revenue fell 4% in the three months from July through September when compared with a year earlier, from $29 billion to $27.7 billion, the company said Wednesday.
A strong U.S. dollar also has been bad for global companies like Meta. Headquartered in the United States, their products and services, which are going for less in other currencies, are turning a smaller profit back home.
It has been a particularly bad week for tech.
Google parent Alphabet, which reported earnings Tuesday, also struggled amid a downturn in digital ads. Revenue from Google advertising was $54.5 billion in the three months from July to September, down from $56.3 billion the prior quarter.
Microsoft reported the slowest growth it has seen in five years.
But Meta's woes are deeper than its fellow tech titans' because it is investing heavily in a future called the metaverse — a new space built around virtual reality and artificial intelligence.
"I think that our work here is going to be of historic importance and create the foundation for an entirely new way that we will interact with each other and blend technology into our lives," Zuckerberg said on a call with investors Wednesday.
While Zuckerberg has signaled layoffs across most teams to counter losses, the CEO said hiring would increase in other "high priority" areas — namely to build up the metaverse.
Investors have criticized Zuckerberg for spending big on an idea that isn't fully fleshed out despite his optimism in his investment.
"The tougher prioritization and discipline and efficiency that we're driving across the organization will help us navigate the current environment," he told investors on the call.
More Meta shareholders sold off stocks during the day Thursday.
Last week, Snap shares plummeted 30% after the social media company, which is smaller than giants Meta and Alphabet, missed revenue estimates.
veryGood! (5141)
Related
- Tropical weather brings record rainfall. Experts share how to stay safe in floods.
- East Coast storm makes a mess at ski resorts as strong winds cause power outages
- Hate crime charges dropped against 12 college students arrested in Maryland assault
- Bill Belichick's salary at North Carolina: School releases football coach's contract details
- What do we know about the mysterious drones reported flying over New Jersey?
- Dick Van Dyke credits neighbors with saving his life and home during Malibu fire
- Secretly recorded videos are backbone of corruption trial for longest
- East Coast storm makes a mess at ski resorts as strong winds cause power outages
- 'Most Whopper
- Trump taps immigration hard
Ranking
- Tropical weather brings record rainfall. Experts share how to stay safe in floods.
- Drew Barrymore has been warned to 'back off' her guests after 'touchy' interviews
- Luigi Mangione merchandise raises controversy, claims of glorifying violence
- KISS OF LIFE reflects on sold
- Olympic disqualification of gold medal hopeful exposes 'dark side' of women's wrestling
- GM to retreat from robotaxis and stop funding its Cruise autonomous vehicle unit
- Alex Jones keeps Infowars for now after judge rejects The Onion’s winning auction bid
- Stock market today: Asian shares advance, tracking rally on Wall Street
Recommendation
51-year-old Andy Macdonald puts on Tony Hawk-approved Olympic skateboard showing
Luigi Mangione merchandise raises controversy, claims of glorifying violence
The brewing recovery in Western North Carolina
Bill Belichick's salary at North Carolina: School releases football coach's contract details
JoJo Siwa reflects on Candace Cameron Bure feud: 'If I saw her, I would not say hi'
Hate crime charges dropped against 12 college students arrested in Maryland assault
Are you tipping your mail carrier? How much do Americans tip during the holidays?
Billboard Music Awards 2024: Complete winners list, including Taylor Swift's historic night