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Meta shares plunge on earnings, forecast miss
Shares of Facebook and Instagram owner Meta Platforms plunged 20 percent after the bell, Wednesday, as the company missed on Wall Street earnings estimates and posted a weaker forecast. Meta forecast current-quarter revenue in the range of $27 billion to $29 billion – below analysts expectations – as Apple’s privacy features keep businesses from opting to advertise on social media sites.Meta’s total revenue, the bulk of which comes from ad sales, rose to $33.67 billion in the fourth quarter. That beat analysts’ estimates.But, net losses from Meta’s Reality Labs, the company’s augmented and virtual reality business, grew to $10.2 billion for the full year, up from $6.6 billion the previous year. It was the first time the company had broken out this segment in its earnings. Tech stocks fell broadly after the Meta announcement, with Google parent Alphabet down 1.3%. Twitter and Pinterest were both down 10% and Snap down 20%.
