![]() Total costs for the third quarter came in above estimates at $22.1bn, compared with $18.6bn the year prior. Meta said it is shrinking its headcount in some teams and investing in headcount growth “only in our highest priorities”. That includes an estimated $2.9bn in charges in 20 related to “consolidating our office facilities footprint”. Meta also forecast that its full-year 2023 total expenses would be in the range of $96bn to $101bn up from a revised estimate for 2022 total expenses of $85bn to $87bn. More worrying was the company’s estimate that fourth-quarter revenue would be in the range of $30bn to $32.5bn, lower than analysts’ estimates of $32.2bn. Meta also posted user growth figures roughly in line with expectations, including a year-over-year increase of monthly active users on its flagship app Facebook. That deepened a revenue decline begun the previous quarter, when the company posted a first-ever revenue drop of 0.9 percent, but was less steep than the 5.6 percent decline Wall Street had expected, according to IBES data from Refinitiv. The Facebook parent company beat estimates for quarterly revenue, which fell 4 percent to $27.7bn in the third quarter that ended September 30, from $29bn last year. ![]() On top of the disappointing outlook, Meta is contending with slowing global economic growth, competition from TikTok, concerns about significant spending on the Metaverse and the ever-present threat of regulation. ![]() The forecast on Wednesday knocked about $40bn off its stock market value in extended trade. Facebook parent Meta Platforms Inc has forecast a weak holiday quarter and significantly more losses from Metaverse investments next year, sending shares down 14 percent.
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