Shares of Meta (META) plummeted Thursday to their lowest level in six years after reporting plunging profits and downgrading its financial forecast.
Shares of the parent company of Facebook and Instagram fell more than 20% in early trading after reporting profits fell 52% to $4.39 billion for the latest quarter compared to the same period last year. Revenue also fell 4% to $27.7 billion year over year.
It’s the second quarter in a row the company has reported falling revenue.
The company said the fourth quarter could be the same and issued a weaker-than-expected outlook. Meta is projecting fourth quarter revenue to be in the $30 billion to $32.5 billion range. Analysts were anticipating $32.2 billion.
The Menlo Park, Calif.-based company said it’s still committed to developing its Metaverse project, a virtual reality endeavor that Meta has spent $9.4 billion developing. Meta’s Reality Labs division, which oversees the metaverse platform, recorded an operating loss of $3.7 billion in the latest quarter.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth,” Mark Zuckerberg, Meta CEO said in a statement. “We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”
Meta’s market capitalization is about $270 billion, roughly the same as Home Depot, which is about 70% off its $920 billion valuation a year ago.