Facebook owner Meta on Wednesday forecast third-quarter 2022 revenue below estimates after posting its first quarterly revenue decline, amid general weakness in the digital ad market.
The company’s stock was down about 5% in aftermarket trading.
The company said it expects third-quarter revenue of between $26 billion and $28.5 billion. Analysts had expected $30.52 billion, according to data from Refinitiv’s IBES.
The Meta result highlights the inflation-induced slowdown in the digital ad industry, which has been booming for decades as companies harness the power of the internet to reach consumers.
Meta faces a number of challenges, including stiff competition from TikTok and Amazon.com for ads and a revenue hit from Apple’s privacy changes to the iOS mobile operating system.
For the quarter ended June 30, Meta said total revenue, most of it from ads, fell to $28.82 billion from $29.08 billion a year earlier.
The company’s net income dropped to $6.69 billion, or $2.46 per share, from $10.39 billion, or $3.61 per share, a year earlier.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
