Meta’s Stock Stumbles Despite Q3 Earnings Beat

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    Meta Platforms, Inc. (NASDAQ: META) recently announced third-quarter earnings that beat expectations for both revenue and profit. Meta’s core business revolves around a range of platforms including Facebook, Instagram, and WhatsApp. And those apps are staying in business, making up for the losses of Reality Labs, the part of the business focused on the metaverse.

    The technology company reported third-quarter earnings of $4.39 per share, beating Wall Street’s expectations of $3.63. Also, his total sales were $34.2 billion, which also exceeded analysts’ expectations of $33.6 billion. This happened even though the company’s Reality Labs business suffered a $3.7 billion operating loss. The company recently announced the Quest 3 headset. This shows that Meta remains committed to growing its Metaverse business despite continued losses in this segment.

    Meta’s overall revenue surge over the past quarter can be attributed to a rebound in advertising revenue and cost-cutting measures initiated under Mark Zuckerberg’s “Year of Efficiency.” The company also recorded a 31% year-over-year increase in ad impressions, beating his expectations of 29.6%.

    However, it wasn’t all great news. The stock will ultimately fall after the earnings, given the soft outlook for the fourth quarter. Susan Lee, Meta’s chief financial officer, highlighted the uncertainty and volatility expected in the coming months, citing geopolitical tensions as a potential factor in the softening of the advertising market.

    There are also legal issues, with 42 attorneys general targeting Facebook and Instagram for allegedly creating addictive features aimed at children. Although Meta is defending its position, these lawsuits could pose significant headwinds in the future.

    Year-to-date, Meta’s stock price is up about 147%. However, there are some challenges ahead that could leave you short-handed. Meta has been a volatile stock over the past few years, so investors should be careful before betting on it.


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