Meta Platforms Inc. (NASDAQ: META) saw its shares fall by as much as 10% in overnight trading after the company's latest earnings results and forward guidance failed to meet Wall Street expectations.

The selloff followed Meta's third-quarter revenue outlook, which projected revenue between $61 billion and $64 billion. The midpoint of that guidance range—$62.5 billion—falls short of analysts' consensus estimate of $63.14 billion, dampening investor sentiment.

Meta, the parent company of Facebook, Instagram, WhatsApp, and Threads, is one of the largest publicly traded companies in the United States and a component of both the S&P 500 and the Nasdaq-100 indices. The company's quarterly results are closely watched as a bellwether for the digital advertising market and the broader technology sector.

The disappointing guidance raised concerns among investors about the company's near-term revenue trajectory, particularly as Meta continues to invest heavily in artificial intelligence infrastructure and its metaverse initiatives. Meta's Reality Labs division, which develops the company's virtual and augmented reality products, has reported cumulative operating losses of more than $40 billion since 2020, intensifying scrutiny of the company's long-range spending commitments. Such capital expenditure commitments have been a recurring focus for analysts evaluating the company's profit margins.

The revenue outlook miss also comes at a time when Meta's peers—Alphabet, Amazon, and Microsoft—are each directing tens of billions of dollars toward AI infrastructure, creating a competitive landscape where investors are weighing the near-term costs of these expenditures against returns that may take years to materialize.

Meta's overnight share price decline reflects the significant volatility that can accompany earnings reports for large-cap technology stocks, where even modest deviations from consensus expectations can trigger sharp market reactions.

Source: CNBC-TV18