Meta stock drops on quarterly results as 'internet disruptions' in Iran drag down user numbers
Meta's stock dropped nearly 7% after its quarterly report showed lower-than-expected user growth and capital expenditures, with the company citing internet disruptions in Iran and WhatsApp restrictions in Russia as contributing factors. Despite missing user growth targets, revenue rose 33% year-over-year to $56.31 billion, exceeding estimates, driven by AI investments boosting its advertising business. Meta maintained strong profitability, though a significant portion of its net income increase was due to an $8.03 billion tax benefit.
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Meta shares fell about 7% in extended trading on Wednesday after the company reported lower-than-expected capital expenditures, or capex, and missed on user growth. Meta attributed its quarter-over-quarter drop in users in part to "internet disruptions in Iran."Here's how the company did, compared with estimates from analysts polled by LSEG:Earnings per share: $7.31 adjusted vs. $6.79 estimatedRevenue: $56.31 billion vs. $55.45 billion estimatedRevenue climbed 33% from $42.3 billion a year earlier, marking the fastest quarter for growth since 2021.
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