Meta, the parent company of
The results largely followed a broader decline in the digital advertising market that is dinging Meta rivals such as Google, Twitter — which also posted a revenue decline — and Snap. Google's parent company Alphabet reported its slowest quarterly growth in two years on Tuesday.
CEO
“This is a period that demands more intensity," he said in a conference call with analysts. “Expect us to get more done with fewer resources."
Beyond the economic downturn, Meta faces some unique challenges, including the looming departure of its chief operating officer
In addition to
Meta earned profits of
Revenue was
Analysts, on average, were expecting earnings of
“The year-over-year drop in quarterly revenue signifies just how quickly Meta’s business has deteriorated," said Insider Intelligence analyst
She added that the good news — if it could be called that — is that Meta's competitors are also experiencing slowdowns.
Meta is in the midst of a corporate transformation that it says will take years to complete. It wants to evolve from a provider of social platforms to a dominant power in a nascent virtual reality construct it calls the “metaverse" — sort of like the internet brought to life, or at least rendered in 3D. CEO
“Expect Meta’s decline to continue until Meta can monetize the metaverse, and begin another Meta-reverse,” Shah said.
Meta forecasts revenue of
“This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty," finance chief
Shares of
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