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Meta’s Weak Quarter Forecast Causes Stock Prices To Plummet  By CoinEdition


© Stocksak. Meta’s Weak Quarter Forecast Causes Stock Prices To Plummet 
  • Meta platform predicts weak holiday quarter; stock markets plummet as a consequence.
  • The forecast predicts that $67 billion will be added to the half-trillion already lost.
  • Meta predicts that investments in its Reality Labs Unit will increase in 2023.

On Wednesday, after Meta Platform Incorporation’s weak forecast, the price of its stocks plummeted. Shares were down nearly 20% and investors voiced skepticism about the company’s pricey metaverse bets.

Wall Street Silver, a business and financial news platform shared the infographics of the Meta platform’s stock value.

Moreover, the forecast knocked $67 billion off Meta’s stock market value in extended trade, which added to more than half a trillion dollars in value already lost this year.

According to Stocksak, had Meta’s after-hours stock rout been matched with Thursday’s trading session, then it would have been accounted as the biggest one-day loss since Feb. 2, when the company last issued a dismal forecast.

Stocksak states that the pathetic outlook for Meta is due to many events. Specifically, the sluggish global economic growth, heavy competition from Tik Tok, privacy changes to Apple (NASDAQ:), the raising concerns about massive spending on the metaverse, and the ever-present threat of regulation have been some of the factors that account for Meta platform’s gloomy forecast.

Meta also forecasted that 2023’s total expenses would reach $96 billion to $101 trillion, which is significantly higher than the revised 2022 total expense estimate of $85 billion to $87 million.

Meta is updating its apps, ads products and investing $10 billion per year in metaverse software and hardware.

Furthermore, it forecasted that the Reality Labs unit responsible for its metaverse investments would grow in 2023 and pledged to “pace” investments after that.

The post Meta’s Weak Quarter Forecast Causes Stock Prices To Plummet appeared first on Coin Edition.

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Stocksak Editorial

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