Meta Platforms Inc (NASDAQ:META) shares are trading lower Thursday after the company reported worse-than-expected earnings results.
Meta said third-quarter revenue decreased 4% year-over-year to $27.71 billion, which beat average analyst estimates of $27.53 billion, according to Benzinga Pro. The social media and metaverse company reported quarterly earnings of $1.64 per share, which missed average estimates of $1.91 per share.
Meta said daily active people for its family of products reached 2.93 billion in September, an increase of 4% year-over-year. Monthly active people for its family of products climbed to 3.71 billion last month, up 4% year-over-year.
Facebook daily active users totaled 1.98 billion, up 3% year-over-year, while monthly active users for Facebook increased 2% year-over-year to 2.96 billion.
"While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. 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," said Mark Zuckerberg, founder and CEO of Meta.
Meta expects fourth-quarter revenue to be between $30 billion and $32.5 billion versus average analyst estimates of $32.31 billion. 2023 capex is expected to be in a range of $34 billion to $39 billion.
Related Link: Meta Platforms Investors Run From Q3 Earnings: Revenue Beat, EPS Miss, Daily Users Up, Costs Set To Climb In 2023
Analyst Assessment: Several analysts adjusted ratings and price targets on the stock following the company's quarterly results.
- Keybanc analyst Justin Patterson downgraded Meta from Overweight to Sector Weight.
- Morgan Stanley analyst Brian Nowak downgraded Meta from Overweight to Equal-Weight and lowered the price target from $205 to $105.
- Barclays analyst Ross Sandler maintained Meta with an Overweight and lowered the price target from $250 to $165.
- Mizuho analyst James Lee maintained Meta with a Buy and lowered the price target from $180 to $160.
- Raymond James analyst Aaron Kessler maintained Meta with an Outperform and lowered the price target from $215 to $171.
- Citigroup analyst Ronald Josey maintained Meta with a Buy and lowered the price target from $222 to $168.
META Price Action: Meta is making new 52-week lows on Thursday.
The stock was down 22.8% at $100.30 at time of publication.
Photo: Gerd Altmann from Pixabay.
