Meta, the company behind Facebook, WhatsApp, and Instagram, faced a sharp early drop in stock value after unveiling its third-quarter results. The market reacted as shares slid on the open, signaling concerns about the short-term path despite the name’s global scale.
The stock touched a low near 97.36 dollars, about a quarter below the prior close and well off the start of 2022. It marked the first dip below 100 dollars since 2016 and remained well under the late 2021 peak above 384 dollars.
For the third quarter, Meta reported a net profit of 4,395 million dollars, equivalent to 4,433 million euros, representing a 52.2 percent decline from the same period last year.
Total quarterly revenue reached 27,714 million dollars, around 27,956 million euros, which is 4.5 percent lower than the year-ago quarter. Expenses and costs rose 19 percent to 22,050 million dollars (22,242 million euros).
Daily active users in September rose 3 percent year over year to 1.98 billion, while monthly active users grew 2 percent to 2.96 billion.
Looking at the first nine months of 2022, Meta posted a net profit of 18,547 million dollars (18,709 million euros), down 36.2 percent from the previous year.
Income through September reached 84,444 million dollars (85,181 million euros), up a modest 0.2 percent, with costs increasing to 61,899 million dollars (62,439 million euros), up 23.6 percent.
The Reality Labs division, which focuses on augmented and virtual reality and the metaverse, reported a 48.9 percent revenue drop in the third quarter to 285 million euros 287 million, contributing to a nine-month total of 1,433 million euros 1,445 million, down 2.6 percent.
The company recorded an operating loss of 3,672 million dollars in the third quarter, equivalent to 3,704 million euros, a 39.6 percent rise. Through September, the red ink totaled 9,438 million dollars (9,520 million euros), up 37 percent.
In remarks accompanying the results, Meta chief executive Mark Zuckerberg acknowledged the near-term revenue challenges but stated there are reasons to expect a return to stronger growth in the future. He emphasized plans to focus on efficiency in 2023.
Meta chief financial officer David Wehner provided guidance for the fourth quarter, projecting revenues between 30,000 and 32,500 million dollars (approximately 30,262 to 32,784 million euros). The company also anticipated annual costs in the range of 85,000 to 87,000 million dollars (about 85,742 to 87,759 million euros), including an expected impact around 900 million euros due to the consolidation of office space.
Citations: Meta’s quarterly results reflect a challenging period for revenue growth amid rising expenses, yet executives underline ongoing investment in the company’s long-term operational efficiency and product roadmap.