Meta Platforms stock fell over 9% on Thursday after quarterly results missed adjusted earnings estimates and the company raised the lower end of its full-year capital expenditures. Jefferies senior analyst Brent Thill said Meta lacks clarity on revenue engines beyond its core advertising business, contrasting it with Google and Microsoft, which have multiple growth drivers. Thill noted that while Meta's advertising business is executing well, investors are asking what other engines will drive growth over the next three to five years. He compared Meta to a band with a great guitarist but needing a lead singer and drummer, emphasizing that the company did not demonstrate new product lines or usage growth this quarter.
Alphabet Inc Class C
Microsoft CorporationMeta Platforms Inc.Quarterly results missed adjusted earnings estimates and raised capex, leading to a 9% stock drop.