The parent company of Facebook, Meta Platforms Inc., reported its second consecutive revenue loss as the social media behemoth battles a whirlwind of difficult economic conditions that have reduced its market value by more than half a trillion dollars so far this year. As reported by the company, there was a significant decline in the total revenue and net profit incurred in the third quarter of 2022, Sep 2022, compared to the previous quarters' data in 2022 and 2021.
During a widespread sell-off of tech equities on October 26, 2022, Meta's share price dropped by more than 5%, and it is currently trading at a level last seen in 2017. Following the earnings report, Meta shares fell another 20% in after-hours trading.
The challenging financial environment, increasing competition from TikTok, and the effects of Apple Inc.'s ad-tracking adjustments are just a few of Meta's difficulties. These issues have all had an impact on its sizable advertising business. With Snap Inc. reporting poor results last and fourth week of Oct 2022 and Google's YouTube subsidiary reporting a fall in advertising revenue on October 25, 2022, at least some of those problems are being felt throughout Silicon Valley.
Along with Facebook and Instagram, Meta is making an ambitious and costly transition toward a future based on the so-called metaverse, where users may live, work, and play in an immersive online environment. The war in Ukraine and other issues, such as rising inflation, are producing a slowdown in ad expenditure, and Meta is battling this in the digital advertising industry.
United States of America
United States of America
United States of America
Germany
United States of America
Ireland
United States of America
Hong Kong
Japan
United Kingdom
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Access more premium companies when you subscribe to Explorer