What's worse for Meta: declining Facebook ad revenues or increasing costs of metaverse push?

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What's worse for Meta: declining Facebook ad revenues or increasing costs of metaverse push?
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Analysts surveyed by FactSet on average expect Meta to report earnings of $1.90 a share, down from $3.22 a share a year ago. As of Friday’s trading close, $META has collapsed 61% so far this year — among the worst Nasdaq-100 performers.

Meta Platforms Inc. is facing some mega issues as it prepares to report fiscal third-quarter earnings on Wednesday afternoon.

Snap Inc.’s SNAP, +7.09% dreary guidance on digital-ad revenue in the current quarter didn’t help matters last week. “Facebook, now Meta, finds itself at a crossroads,” Bernstein analyst Mark Shmulik wrote following the debut of Quest Pro, Meta’s $1,500 virtual-reality headset for professionals, on Oct. 11. “The bears are loud, the bulls are at their wits’ end worried about holding on to a falling knife, while deep value investors remain on the sidelines wondering if and when to step in,” he wrote.

Contributors to Estimize — a crowdsourcing platform that gathers estimates from Wall Street analysts as well as buy-side analysts, fund managers, company executives, academics and others — are also projecting earnings of $1.90 a share on average.

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