Meta posts first-ever revenue drop as inflation throttles ad sales

Meta Platforms Inc issued a gloomy forecast after recording its first ever quarterly drop in revenue on Wednesday, with recession fears and competitive pressures weighing on its digital ads sales.

Shares of the Menlo Park, California-based company were down about 4.6% in extended trading.

The company said it expects third-quarter revenue to fall to $26 billion and $28.5 billion, which would make it a second year-over-year drop in a row. Analysts were expecting $30.52 billion, according to IBES data from Refinitiv.