Meta shares dip following cautious commentary about unrest in the Middle East
Shares of Meta dipped more than 2% Thursday, a day after the company released strong third-quarter results but offered cautious comments about potential ad softness due to the ongoing Israel-Hamas war.
Meta reported $34.15 billion in revenue for the quarter, up 23%, and the fastest rate of growth since 2021. The company’s net income jumped 164% to $11.58 billion, or $4.39 a share. Both revenue and earnings surpassed Wall Street’s expectations, marking a welcome change for investors after the company’s core digital ads business dropped for three straight quarters in 2022.
Shares of Meta initially rose after the report but the gains were erased when Meta’s finance chief Susan Li warned analysts about unpredictability in the Middle East. As a result of the conflict in Israel, Meta gave fourth-quarter guidance between $36.5 billion to $40 billion. The range is wider than the $2.5 billion gap the company typically offers.
But despite the uncertainty around the war, many analysts remain optimistic about Meta’s performance cnbc.com reports.
