The news comes after a bad week for Meta, which revealed that Meta Quest 2 headset prices are going up while Kylie Jenner and Kim Kardashian slammed Instagram
” src=”https://www.nationalworld.com/jpim-static/image/2022/07/28/11/GettyImages-1349800127.jpg?width=640&quality=65&smart&enable=upscale” srcset=”https://www .nationalworld.com/jpim-static/image/2022/07/28/11/GettyImages-1349800127.jpg?quality=65&smart&width=320 320w, https://www.nationalworld.com/jpim-static/image/2022/ 07/28/11/GettyImages-1349800127.jpg?quality=65&smart&width=640 640w, https://www.nationalworld.com/jpim-static/image/2022/07/28/11/GettyImages-1349800127.jpg?quality =65&smart&width=990 990w” data-hero=”” fetchpriority=”high”/> Meta has released its first sales decline (Picture: Getty Images)
Meta has released its first sales decline (Picture: Getty Images)
Now its turbulent period has been underscored by the first drop in sales in the last financial quarter.
So why is Meta losing – and how has this bad news affected the stock price?
Here’s what you need to know.
Why did the meta earnings go down?
Meta released its financial results for the second quarter of 2022 on Wednesday, July 27.
They showed that the company’s total revenue fell 1% (US$255 million or £210 million) to US$28.8 billion (£23.7 billion) if you include the three months to June 2022 compared to the same period in 2021.
This is the first quarterly revenue decline that Meta, formerly known as Facebook, has released.
Total revenue is how much money a company makes from all of its activities before expenses like salaries and taxes are deducted.
What’s left after all these things are subtracted from the total sales number is called net profit.
This number determines how much money a company can invest in itself and hand out bonuses or keep in the bank.
These, too, fell 36% to $6.7 billion (£5.5 billion) in the quarter.
These results were driven in part by a decline in the average price per ad, which fell 14% year over year.
Meta said it believes this decline was due to the current economic uncertainty around the world.
Despite financial losses, the results also showed that more people signed up to Facebook and Meta’s other social media apps.
The company said an average of 1.97 billion people logged into Facebook daily in June, up from 1.96 billion in March.
Meanwhile, in June, an average of 2.88 billion people used at least one of its apps every day, up from 2.87 billion in March.
Social media site Twitter also saw revenue decline 1% in the second quarter, while Alphabet — the parent company of Google and YouTube — saw slow revenue growth from 62% to 13% over the same period.
What did Mark Zuckerberg say about the meta results?
The billionaire said the slowdown in Meta’s revenue growth means some multi-year projects are “slowing the pace” and other investments are being delayed.
Mr. Zuckerberg also revealed that Meta planned to “continuously scale back” headcount growth over the next year — a move that would shrink many of its teams.
“This is a time that requires more intensity and I expect that we will do more with fewer resources,” he said.
“We are currently in the process of raising the targets for many of our efforts.
“Previous challenging times have been transformative for our company and have helped us develop our next generation of leaders. I assume that it will not be any different in this time.”
The tech chief added that he thinks Meta will come out of the downturn “stronger and more disciplined” than it went in.
What is the meta stock price?
This marks a 58% drop from a yearly high of $378.69 recorded in September 2021 and a 13% drop from $183.18 recorded last week.