Meta Platforms Inc., Facebook’s parent company, reported its first quarterly revenue decline since going public in 2012, as it grapples with a weak advertising market, increased competition from rivals like TikTok, and privacy changes by Apple Inc..
Revenue for the second quarter ended June 30 fell to $28.82 billion from $29.07 billion a year earlier, the company said in a statement Wednesday. Analysts on average had expected revenue of $28.91 billion, according to data compiled by Bloomberg..
Net income slumped 36% to $6.69 billion, or $2.46 per share, from $10.39 billion, or $3.61 per share, a year earlier. On an adjusted basis, the company earned $2.46 per share, below the average analyst estimate of $2.59..
Shares of Meta Platforms fell about 4% in extended trading after the results were announced. The stock has tumbled 52% this year through Tuesday’s close, wiping out nearly $500 billion in market value..
The disappointing results underscore the challenges facing Meta Platforms as it tries to navigate a rapidly changing digital advertising landscape. The company has been investing heavily in new areas like the metaverse, but it is unclear when those investments will start to pay off..
In a call with analysts, Meta Platforms Chief Executive Officer Mark Zuckerberg acknowledged the challenges facing the company but said he was confident in its long-term prospects..
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