Meta Tumbles as Sales Forecast Shows Depth of Ad-Market Weakness
- CEO says ‘fundamentals are there’ for stronger revenue growth
- Meta is betting big on the metaverse, and losing billions
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Meta Platforms Inc. gave a forecast for revenue in the fourth quarter that was on the low end of analysts’ estimates, showing the social-media platform continues to struggle with a weak advertising market amid an economic slowdown.
The owner of Instagram and Facebook said it sees $30 billion to $32.5 billion in revenue in the last three months of the year. Analysts had been expecting $32.2 billion, according to estimates compiled by Bloomberg. The shares tumbled more than 12% in extended trading and are down more than 55% this year through Wednesday’s close.