Meta Platforms (META) scaled down its forecasts after recording a drop in revenue for its first-ever quarter in history! On top of that, the company faces a lot of challenges in the form of new competitors, recession, and even pressure on digital ad sales.
Due to the negative pressure and declining fundamentals, the company's shares dropped almost 4.6% during the extended trading session. Going ahead, the company is expecting a further drop in revenue as well as other relevant figures.
Revenue May Drop From $30 Billion To $26 Billion
Analysts were expecting the Meta platforms revenue to be around $30.5 billion for the third quarter. But keeping in view the current challenges and the difficulties ahead, the company now expects its revenue to be around 426 billion or $28.5 billion at best.
If we look at the total revenue, which also includes ad sales, the drop will be around 1% - As a result, the numbers may drop to around $28.8 billion during the 2nd quarter. Once again, these numbers missed the projections set by the Wall Street experts.
When numbers like this come from a company which operates multiple top social media platforms, it is most definitely a matter of concern.
The monthly active users of Facebook are also growing at a much slower pace than the expected numbers. The overall increase was only 1% for the y/y, which is nothing major and significant.
Although the company is still at the top, many are wondering whether this will become the new MySpace among TikTok, Snapchat and others.
Just like other tech companies, Meta Platforms is also facing problems from the strong dollar currency. The reason for this is simple - Any sales in the foreign currency also lead to smaller amounts in dollar terms.
For the 3rd quarter, the revenue growth of Meta is expected to be around 6% if the current exchange rates remain stable.
What do you think about the current financial situation of Meta? Will it continue to experience problems in the near future? Let us know in the comments!