(Reuters) – Facebook (NASDAQ:FB) owner Meta Platforms Inc shares plunged 22% late on Wednesday after the social media company missed on Wall Street earnings estimates and posted a weaker-than-expected forecast.
Several other social media companies also fell hard after the bell, including Twitter (NYSE:TWTR), Pinterest (NYSE:PINS) and Spotify (NYSE:SPOT), which also released disappointing results late Wednesday.
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ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH MANAGEMENT, FAIRFIELD, CONNECTICUT
“It’s disappointing. I don’t think it turns around the current relief rally we are seeing in the tech space. It might have an influence on some of the advertising companies.”
“People have pushed the concerns about the Fed and inflation aside for at least right now. I don’t think that the Facebook news detracts from that thinking.”
MICHAEL FARR, CEO OF FARR, MILLER AND WASHINGTON LLC
“The company is still a fabulous company, people continue to have a lot of profits in this company, but misses and downward guidance are being brutally punished by investors.”
“This is a very unforgiving environment and this is likely an overreaction for companies with strong balance sheets. But we are seeing clearly that investors are skittish and they will hit the sell button first and ask questions later.”
PETER TUZ, PRESIDENT OF CHASE INVESTMENT COUNSEL IN CHARLOTTESVILLE, VIRGINIA
“It’s a sign of decelerating growth, and people don’t like to see that with growth stocks.”
Source: Economy - investing.com
