Despite reporting strong financial results for the first quarter of 2024, Meta’s stock plummeted more than 16% in after-hours trading on Wednesday. The social media giant reported revenues of $36.5 billion for the three months ended March 31, a 30% increase from the same period last year and ahead of expectations. Meta’s profits also more than doubled to $12 billion during the quarter. In the company’s earnings release, CEO Mark Zuckerberg expressed optimism about the company’s performance, stating, “It’s been a good start to the year.” He highlighted the progress made with Meta AI and Llama 3, as well as the continued growth across the company’s apps. However, investors seemed unimpressed by these positive developments, with Meta’s share price sinking to around $412 in after-hours trading. The primary concern among investors appears to be Meta’s outlook for the next quarter, with the company predicting revenues between $36.5 billion and $39 billion for the three months ending June 31. This range fell short of analysts’ expectations, leading to the sell-off in the stock. Despite the recent drop, Meta’s stock has performed well over the past year, up 42.5% so far in 2024 and 137.8% in the last 12 months. The company remains one of the top-performing tech stocks and is part of the “Fab Four” of big tech stocks that continue to rally, even as others like Alphabet, Apple, and Tesla have struggled.
Meta’s Stock Plummets After Earnings Report
