Meta shares fell in premarket trading on Thursday after its latest earnings report, as a tech selloff that began in Asia spread. Reuters reported that a non-voting stock plan and a legal penalty offset a quarterly revenue beat.
Meta's stock fell nearly 2% in premarket trading on Thursday after the company's latest earnings report, as technology shares across the board declined following a selloff in Asia, according to MarketWatch. Investors had been optimistic about CEO Mark Zuckerberg's artificial-intelligence vision, but the sector-wide drop weighed on the share price.
The core advertising business delivered a strong quarter, MarketWatch reported, and investors are now eyeing new businesses built around the Muse personal assistant.
Revenue beat meets capital spending worries
Meta was the first of the so-called AI hyperscalers to publish quarterly results, and it reported third-quarter revenue late on Wednesday that beat expectations, according to Reuters. However, the optimism was short-lived, Reuters said, after the company unveiled a plan to issue non-voting stock that revived concern over its mounting capital commitments.
A legal blow followed overnight. A judge in New Mexico ordered the company to pay a $25 billion penalty to the state in a data privacy case, Reuters reported.
Broader markets retreat
Reuters put the move in Meta's shares at around 0.8% lower in premarket trading, while Tesla, which also reported earnings, dropped nearly 5%.
Elsewhere, MSCI's All-World index was set for its largest daily fall in two weeks, down 0.4%.
In Europe, the STOXX 600 fell 1%, and US stock futures dropped between 1% and 2%, which suggested a lower open.
Sources: MarketWatch (snippet-based), Investing.com
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