Meta, the company that owns social networking site Facebook, posted a 1% drop in quarterly revenue for the first time in years.
According to the company’s report, Meta generated $28.82 billion in revenue in the second quarter of this year, up from $29.07 billion in the same period last year.
The company posted a profit of $6.69 billion, down 36% from last year.
Wall Street analysts had expected the Meta to post $7.04 billion in revenue and $28.9 billion in revenue.
The company attributed the decline to weak demand for digital advertising and uncertain economic conditions in general.
Meta CEO Mark Zuckerberg said: “It looks like we have entered an economic downturn that will have a significant impact on the digital advertising sector. The situation looks worse than it was a quarter ago.”
He indicated that he plans to continue investing in key sectors, which will allow Meta to grow in the next phase.
Source: The New York Times.