Facebook forecast points to possible revenue drop for the first time after decade of growth
Summary
Though shares of Facebook parent Meta jumped about 20% in extended trading on Wednesday on better-than-expected profit, the companys business has flatlined and doesnt look like it will rebound at least until the second half of the year. The meager forecast follows year-over-year growth of just 7% in the first quarter, the slowest pace of expansion in Facebooks 10-year history as a public company. On the earnings call on Wednesday, Meta CEO Mark Zuckerberg attributed the slowdown to both internal and macro factors. Specific to Facebook, Zuckerberg said theres a focus on short-term videos, which is a "drag on revenue," because they dont monetize as well as its traditional ad services. As of Wednesdays close, the stock had lost almost half its value this year, spurred by a big forecast miss in Februarys earnings report.