Meta Stock Tanks 10% Despite Big Earnings Beat

Sales for the period totaled $36.46 billion for Meta, easily exceeding projections of $36.14 billion and exceeding last year's sales by 27%.

With $4.71 earnings per share, it outperformed $4.32 earnings per share estimates, and its $12.4 billion net income was more than expected at $11.4 billion.

Although the first-quarter numbers are remarkable, investors did not take kindly to Meta's announcement that it expects second-quarter revenues of $36.5 billion to $39 billion, with a midpoint projection of $37.8 billion, well below average analyst estimates of $38.3 billion, according to FactSet.

In addition, the business increased its full-year spending projection, citing rising costs in its unfavorable metaverse division and undermining the profitable growth narrative that has elevated Meta's stock over the last 18 months.

In light afternoon trading, Meta's shares dropped 10%, trading at roughly $440 a share, which, if the losses continue into Thursday's normal session, would be the company's lowest price since February 1.