After reporting its first-ever quarterly revenue decline on Wednesday, Meta Platforms Inc. gave a pessimistic prognosis, citing recession concerns and competition pressures as factors affecting its sales of digital ads.
In extended trading, the company’s shares in Menlo Park, California, were down nearly 4.6 percent. The business stated that it anticipates third-quarter revenue to decline from $26 billion to $28.5 billion, which would mark the second consecutive decline over the same period last year. Analysts had $30.52 billion on their radar.
Nearly all of the total revenue—which was $28.8 billion in the second quarter that ended June 30—came from the selling of advertisements. In the second quarter, monthly active users on the leading social network Facebook increased by 1% year over year to 2.93 billion, falling just short of expert predictions, but daily active users easily outperformed forecasts at 1.97 billion.
