Following the news, shares of Facebook’s parent company rose 6.7% to $96.88. By mid-day, the initial momentum had ebbed and shares were trading 4% higher.
Meta in October forecast a weak holiday quarter and significantly higher costs next year, wiping about $67 billion from Meta’s market value, adding to the more than half a trillion dollars in value already lost this year, in which its shares accumulate a decrease of 72%.
The disappointing outlook comes as Meta grapples with slowing global economic growth, competition from TikTok, privacy changes from Apple, concerns about massive spending in the metaverse, and the ever-present threat of regulation.
Several tech companies including Microsoft, Twitter and Snap have cut jobs and reduced hiring in recent months as global economic growth slows due to higher interest rates, rising inflation and a crisis. energy in Europe.
In the session on Tuesday, the Nasdaq, where technology is very present, fell 0.1%.