Why is Meta Platforms Inc (META) Stock down?
Meta Platforms Inc Stock (META) dropped by 3.73% from $299.53 to $288.35 in the trading on Thursday October 26, 2023. The reason why META stock down today is due to the weak outlook for advertising revenue. Meta published its Q3 results, delivering performance that came in well ahead of the market's expectations. The company's earnings performance beat the average analyst target by $0.76 per share, and sales beat the average target by roughly $700 million. But Meta's forward guidance and commentary are dragging on the stock, along with a general uptick in bearish sentiment surrounding the tech sector. For Q4, Meta is guiding for sales to come in between $36.5 billion - $40 billion. Meanwhile, the average analyst estimate had called for sales of $38.87 billion in the quarter. In addition to the midpoint of its guidance falling short of Wall Street's target, management's commentary during the earnings call has been broadly perceived as cautious.
Shares of Meta Platforms (META) closed the session down 3.6% today, in line with a broad sell-off in tech stocks and after the company launched a new VR subsciption service that seemed to fail to excite investors. The subscription could add a new revenue stream for Meta, but it's also evidence that the headset is mostly a device for gamers, adding to the perception that its utility is limited.