Shares of Meta plunged 23% Thursday morning after Facebook’s parent issued a weak forecast for the fourth quarter that came short of Wall Street’s expectations.
Meta shares were trading under $100 at market open, the lowest price since 2016, and continuing their 2022 freefall after plunging 19% in extended trading on Wednesday.
Meta on Wednesday posted the second quarterly revenue decline since going public and warned about cutting costs ahead of 2023.
The company reported quarterly revenue of $27.7 billion on Wednesday, a decline of more than 4% year over year. Its profit plummeted 52% to $4.4 billion sending alarms to investors.
“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,” Meta CEO Mark Zuckerberg said in a statement.
Meta CEO Mark Zuckerberg is still focused in the metaverse as the company continues to increase spending to build out its AI capabilities.
Since the start of the year, Meta shares are down by more than 61% facing harsh competition from rivals such as TikTok, and a slowdown in online ad spending.
Meta reported having 2.96 billion monthly active users on its Facebook app at the end of the quarter, down from the 6% growth rate posted last year.
Meta is expecting revenue for the fourth quarter to be $30 billion to $32.5 billion. Analysts were expecting sales of $32.2 billion.