Facebook's parent company, Meta's revenue, declined for the second consecutive quarter.
The company's revenue decreased in the third quarter due to the decline in advertising revenue. This quarter's weak results have raised questions about the Metaverse's plan to spend $10 billion annually. Because till now, not much information has been revealed about this other than the concept.
On the other hand, the revenue graph of the company is continuously rolling downwards. Due to weak results, the stock of Meta has also fallen heavily. Meta has taken a hit due to the reduced spending on large-scale ads. After the weak quarterly results, Meta's shares fell by about 19 percent. So far this year, the stock of Meta has broken more than 68 percent.
The company said that in the third quarter, the daily number of users of its flagship; app Facebook was 1.984 billion, which is 16 million more than the previous quarter. Meta's revenue in the third quarter declined 4 percent to 27.71 billion from $29.01 billion.
However, this is slightly higher than the experts' estimate of 27.4 billion. Apart from the sharp fall in revenue, Meta has also forecast weaker-than-expected sales for the current quarter, raising concerns that the fall in revenue may not turn into a trade. Meta has projected sales of $30 billion to $32.5 billion in the fourth quarter. At the same time, the net income has been $ 4.4 billion. The net income of Meta has registered a decline of 52 percent yearly. The surprising thing to investors is that the revenue of Meta has fallen for the second consecutive quarter. The company's revenue fell by one percent in the first and second quarters. Zuckerberg said in a statement that we are facing challenges on the revenue front. We are approaching 2023, focusing on priority and capability, which will help us navigate the moment.