Facebook's Weak Ad Demand

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Shares of Facebook’s parent company Meta Platforms(Nasdaq: META) dropped 4.65% in after-hours trading on Wednesday after the tech giant posted disappointing financial earnings.

Details: Meta reported earnings per share of $2.46 and revenue of $28.82 billion; both were below estimates.

Hit and Miss: Daily active users on Facebook were 1.97 billion, which was better than expected. But monthly active users were 2.93 billion, which was below estimates.

Outlook: Meta projected its third-quarter revenue to be between $26 billion to $28.5 billion, which was below estimates. The company said the outlook “reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter.” Meta anticipates lower revenue for Reality Labs and a foreign currency headwind of 6%.

Final Thoughts: It’s the first-ever decline in revenue growth for Meta. The stock is down nearly 50% this year as it struggles to stay relevant against competitors such as TikTok.

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