Meta’s shares plummet on weak Q4 forecast and drop in ad spending

Facebook parent Meta witnessed a decline in revenue for the second consecutive quarter. The company’s third-quarter revenue fell 4% to $27.7 billion.

A widespread drop in online ad spending and increasing competition from TikTok are the two major factors that contributed to the loss in earnings.

Meta’s shares fell 19% in extended trading Wednesday after forecasts revealed the company could see another dip in its fourth-quarter revenue. 

According to Refinitiv data, revenue for the upcoming quarter can range between $30 billion to $32.5 billion, as analysts project $32.2 billion.

Meta’s loss comes as other tech giants witnessed a similar decline in the third quarter. Google parent Alphabet announced a net profit of $13.9 billion in its third quarter—down 27% from a year earlier.