Meta stocks tumble: What this means for Facebook's parent company

Meta stocks tumble: What this means for Facebook's parent company

Facebook parent Meta reported that its revenue declined for a second consecutive quarter.

The reason is falling advertising sales and competition from TikTok’s wildly popular video app.

The company’s stock price has fallen by approximately 60% in 2022.

The quarter’s weak results raised fresh questions about whether Meta’s plans to spend $10 billion yearly on the metaverse is prudent.

The company is now reportedly cutting down staffing costs by 20% and limiting spending on its metaverse project to $5 billion per year.

The company had about 87,000 employees as of September 30, 2022, an increase of 28% year-over-year.

Revenue fell 4% to $27.71 billion from $29.01 billion, slightly higher than the $27.4 billion that analysts had predicted.

Despite the revenue decline, Meta grew its Facebook user base. The platform's monthly active users were 2.96 billion as of September 30.