As Facebook’s prediction halts the tech-led comeback, Wall Street’s winning streak comes to an end.
Facebook underperformed on profits but outperformed on revenue. The number of monthly active users was 2.9 billion, which was in line with analysts’ expectations.
Facebook (Meta) measures the amount of its global active user base using monthly active users, which it monetizes by selling ad space on its social media platform.
Cost inflation and supply chain problems, according to the corporation, are affecting advertisers’ budgets.
Wall Street snaps winning streak
On Thursday, Wall Street ended a four-session winning streak. All three benchmark market indices finished down, with the Facebook stock falling to new lows.
The wipeout of Meta Platforms, Facebook’s owner, destroyed almost 230 billion dollars in market value, the largest one-day loss in US company history.
The Dow Jones Industrial Average was down 1.5 percent, the S&P 500 was down 2.4 percent, and the Nasdaq Composite index was down 3.7 percent.
China’s monetary easing attempts to prop up a faltering economy moved up this week with the reduction of a set of key policy rates and lending benchmarks, and markets fear Beijing could soften even more before the economy reaches a bottom.
With the property downturn expected to last until 2022 and the fast-spreading Omicron variant dampening consumer activity, many analysts believe more easing measures will be required.
This is despite the fact that other major economies, including the US, are expected to tighten their monetary policies this year.
The one-year loan prime rate was cut from 3.80 percent to 3.70 percent. In addition, the five-year LPR was cut by 5 basis points to 4.60 percent from 4.65 percent, the first cut since the financial crisis.