Meta Reports Weakest Revenue Growth in a Decade

Facebook owner Meta has reported its weakest revenue growth in a decade but partially rose after a few hours.

Meta recorded revenue of $27.9 billion between January and March, slightly below Wall Street’s prediction of $28.2 billion.

Meta explained that ad budgets have strained from the rising inflation and worsened amid Russia’s invasion of Ukraine.

However, Meta’s stock rose 19% in after-hours trade on Wednesday.

Meta has lost roughly half of its value since the beginning of 2022 after a dismal February earnings report when Facebook’s daily active users declined for the first time.

Meta also forecasted a negative quarter blaming ongoing factors such as Apple’s privacy changes and increased competition from platforms like TikTok.

“It’s good news that Meta somehow managed to eke out growth in DAU. It needed to show some sort of turnaround from last quarter’s performance. However, growth in monthly active users is slowing quickly. A few quarters ago, it could count on developing markets to keep the growth engine going, but it’s likely that even these high-growth opportunities are starting to dry up,” Insider Intelligence analyst Debra Williamson said.

Meta warned at the time of its 2021 results last February that revenues during the first quarter of 2022 would not meet market forecasts for different reasons, including increased competition.

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