European Capital Partners - Meta Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Meta

Oct 27, 2022

Meta Platforms Inc, share price plunged more than 20% in late trading yesterday after giving a disappointing revenue outlook and Zuckerberg asking for more patience ( read more time and costs ) in developing the metaverse. In the real world however, Meta’s revenues have fallen 4.5% in Q3 and the company guides for a further fall in Q4.  This comes while expenses are growing to fund the digital reality. Investors are voting with their feed as they wonder whether the meta-bet will play off at a time Meta’s digital ad business is under pressure. We note traditional ad companies continue to recover ( see Publicis and WPP for example ). Meta is caught in the real world between a rock and a hard place.

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