Meta shares tumbled 12% Thursday morning after the company issued weak revenue guidance that overshadowed its first-quarter earnings beat. The stock was trading at about $430 at 11 a.m. ET, wiping out roughly $161 billion in market cap from its $493.5 closing price before earnings on Wednesday.
The company reported $4.71 in earnings per share on $36.46 billion in revenue for the quarter, exceeding the $4.32 in expected earnings per share and $36.16 billion in expected sales, according to LSEG.
The stock sell-off gained pace in extended trading on Wednesday after CEO Mark Zuckerberg discussed spending in areas such as artificial intelligence and mixed reality that are not currently profitable.
Meta expects second-quarter revenue of $36.5 billion to $39 billion. The midpoint of the range, $37.75 billion, falls short of analysts’ average estimate of $38.3 billion.
