Meta thinks things are looking even worse for the upcoming quarter.
Background: Meta had an alright quarter. The company's revenue was above expectations...but it missed its active user targets. And now, it thinks things are looking even worse for the upcoming quarter.
What happened: The company said inflation and supply shortages would take a toll on their advertisers' budgets (aka, Meta's bread and butter/cash cow).
What else: On top of that, Meta had to bid farewell to its cryptocurrency project, Diem...Yikes. And investors weren't happy about all this: they sent shares down 22%.
💡When investors lose confidence in a company's future, it tends to send that company's share price tumbling. In this case, the drop was the worst-ever sharemarket hit by value in the US.
💡When Facebook changed its name to Meta, it wanted to prove to investors that it had ambitions beyond social media. And investors liked that.
💡Fast-forward a few months, and Meta hasn't really delivered on its promises. Its user numbers are down and its crypto project is dead on arrival. All this tells investors that maybe Meta can't pull everything off.
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