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Meta Platforms Stock Is Falling: What's Happening?

Meta Platforms Inc (NASDAQ: META) shares are trading lower by 4.61% to $161.76 Thursday morning after the company reported worse-than-expected second-quarter EPS and sales results and issued third-quarter total revenue guidance below estimates. What Happen...

Benzinga · 07/28/2022 08:48

Meta Platforms Inc (NASDAQ:META) shares are trading lower by 4.61% to $161.76 Thursday morning after the company reported worse-than-expected second-quarter EPS and sales results and issued third-quarter total revenue guidance below estimates.

What Happened?

Meta Platforms on Wednesday reported quarterly earnings of $2.46 per share which missed the analyst consensus estimate of $2.61. The company also reported quarterly sales of $28.82 billion which missed the analyst consensus estimate of $28.97 billion. This is a 1% decrease over sales of $29.08 billion in the same period last year.

Meta Platforms sees third-quarter revenue as low as $26 billion or as high as $28.5 billion, which is lower than the analyst consensus estimate of $30.52 billion.

Also, daily active users for the company were 1.97 billion in the second quarter, up 3% year-over-year. Monthly active users came in at 2.93 billion in the second quarter, up 1% year-over-year.

See Also: US FTC Seeks To Block Meta's Acquisition Of VR Content Maker Citing Antitrust Concerns

Why it Matters

Zuckerberg, talking at Meta’s second-quarter earnings call, touched on the changes happening to the company-operated Facebook and Instagram social media platforms.

“Right now, about 15% of content in a person's Facebook feed and a little more than that of their Instagram feed is recommended by our AI, from people, groups, or accounts that you don't follow. And we expect these numbers to more than double by the end of next year,” said Zuckerberg... Read More

According to data from Benzinga Pro, Meta Platforms has a 52-week high of $384.33 and a 52-week low of $154.25.