Meta’s stock plunges over 16% after earnings report, wiping out $240 billion market cap.

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The aftermath of Meta’s earnings report sends shockwaves as its stock nosedives over 16% in after-hours trading. With a staggering $240 billion market cap loss, the company faces scrutiny amid concerns over rising costs and revenue forecasts.

Key Points:

  • Meta’s stock experiences a drastic decline of more than 16% in after-hours trading following its earnings report.
  • The company’s market cap suffers a massive loss exceeding $240 billion, marking one of the biggest single-day losses in stock market history.
  • Despite better-than-expected first-quarter results, Meta’s light revenue forecast and anticipated increase in costs trigger investor sell-off.
  • Key financial figures include earnings per share of $4.71 and revenue of $36.46 billion, both slightly exceeding analyst expectations.
  • Meta’s investment in areas like artificial intelligence and infrastructure contributes to rising costs, impacting profit margins.
  • The company faces challenges in maintaining growth momentum amid increased competition and evolving market dynamics.
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Sources:

https://www.marketwatch.com/livecoverage/meta-earnings-facebook-q1-stock-results-expectations?mod=home-page

https://www.cnbc.com/2024/04/24/meta-meta-q1-2024-earnings-.html

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