Meta Shares Falls 2% on Q2 Miss and Weaker Q3 Guidance
2022.07.28 01:33
Meta (META) Shares Falls 2% on Q2 Miss and Weaker Q3 Guidance
By Davit Kirakosyan
Meta Platforms Inc (NASDAQ:META) shares dropped more than 3% after-hours following the company’s reported Q2 results, with EPS of $2.46 coming in worse than the consensus estimate of $2.56. Revenue was $28.82 billion, slightly lower than the Street estimate of $28.94 billion.
Family daily active people (DAP) grew 4% year-over-year to 2.88 billion on average for June 2022. Family monthly active people (MAP) grew 4% year-over-year to 3.65 billion as of June 30, 2022.
“It was good to see positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,” said Mark Zuckerberg, Meta founder and CEO. “We’re putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services.”
The company provided its Q3 guidance, which came in worse than the consensus estimates. Total revenue for Q3 is expected to be in the range of $26-28.5 billion, reflecting a continuation of the weak advertising demand environment experienced throughout Q2. The Wall Street consensus called for revenue of $30.52 billion. The company also expects Q3 Reality Labs revenue to be lower than Q2 revenue.
