Meta PlatformsInc META shares are trading lower Thursday after the company reported worse-than-expected earnings results.
Meta said third-quarter revenue decreased 4% year-over-year to $27.71 billion, which beat average analystestimates of $27.53 billion, according toBenzinga Pro. The social media and metaverse company reported quarterly earnings of $1.64 per share, which missed average estimates of $1.91 per share.
Meta saiddaily active peoplefor its family of products reached2.93 billion in September, an increase of4% year-over-year. Monthly active people for its family of products climbed to3.71 billion last month, up 4% year-over-year.
Facebook daily active users totaled 1.98 billion, up 3% year-over-year, while monthly active users for Facebook increased 2% year-over-year to 2.96 billion.
"While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,"saidMark Zuckerberg,founder and CEO of Meta.
Meta expects fourth-quarter revenue to be between $30 billion and $32.5 billion versus average analyst estimates of $32.31 billion. 2023 capex is expected to be in a range of $34 billion to $39 billion.
Related Link:Meta Platforms Investors Run From Q3 Earnings: Revenue Beat, EPS Miss, Daily Users Up, Costs Set To Climb In 2023
Analyst Assessment: Several analysts adjusted ratings and price targets on the stock following the company's quarterly results. Keybanc analyst Justin Patterson downgradedMetafrom Overweight to Sector Weight. Morgan Stanley analyst Brian Nowak downgradedMetafrom Overweight to Equal-Weight and loweredthe price target from$205to$105. Barclays analyst Ross Sandler maintainedMetawith an Overweight and loweredthe price target from$250to$165. Mizuho analyst James Lee maintainedMetawith a Buy and loweredthe price target from$180to$160. Raymond James analyst Aaron Kessler maintainedMetawith an Outperform and loweredthe price target from$215to$171. Citigroup analyst Ronald Josey maintainedMetawith a Buy and loweredthe price target from$222to$168.
META Price Action: Meta is making new 52-week lows on Thursday.
The stock was down 22.8% at $100.30 at time of publication.
Photo:Gerd Altmannfrom Pixabay.