Meta Platforms Inc, the social media giant that includes Facebook and Instagram, reported its first-ever quarterly sales decline, citing advertisers’ shrinking budgets.
Meta revenue slipped to $28.8 billion in the second quarter, missing the $28.9 billion average analyst estimate. The company’s forecast for the current period also fell short. Shares dropped more than 4% in late trading.
Revenue for the current quarter will be $26 billion to $28.5 billion, falling short of the $30.3 billion analyst estimate, the company said Wednesday in a statement. Shares of Menlo Park, California-based Meta fell 4.5% in extended trading. The stock, which closed at $169.58, has lost half its value this year.
Meta said the proportion will more than double by the end of next year. Zuckerberg called the change “one of the main transformations in our business right now.” Some of Meta’s competitors are also being hit by the slowdown in advertising spending. Alphabet Inc’s Google, the market leader, saw an increase in ad sales, especially in search ads where marketers pay for direct-response advertising. But Snap Inc and Twitter Inc both struggled to meet sales goals; Twitter’s revenue declined.
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