Facebook Parent Meta Reports First Ever Revenue Drop

[Troy]

"Facebook parent Meta Platforms Inc. META 6.55%▲ posted its first decline in revenue and issued a muted outlook as the company struggles to adjust to macroeconomic forces and growing competition from rival TikTok.

 

The company reported quarterly revenue of $28.8 billion, down almost 1% from a year earlier and slightly below the $28.9 billion Wall Street was expecting. It marks the first time that the company has posted a quarterly drop in revenue from the year earlier." (The full article)

 

[Pioneer1]

What I find interesting is how deeply ingrained Wall Street futures and projections are in economics.

It's one thing to bet whether or not someone will win, but it's a higher level to narrow it down to exactly by how much.

[Delano]

So in another 30 quarters they will only be making a billion dollars a quarter.

[Pioneer1]

I'm not an economics expert but to my knowledge "revenue" is the ENTIRE amount of money a corporation takes in.....not just the profit.

The REVENUE may have declined but if their OVERHEAD (cost to operate the company) has also dropped significantly then they'll still come out ahead and quite possibly better than when they were receiving more overall revenue.

A lot of these corporations have slashed so much overhead that even when their overall income declines they make a killing in profits.