Meta to Report Earnings: Can it Sustain Growth After Lawsuit?
Meta to Report Earnings: Can it Sustain Growth After Lawsuit? Meta is set to report third-quarter earnings after the bell Wednesday, and analysts are expecting a return to growth rates above 20%. The report comes a day after a bipartisan group of 42 attorneys general sued the company over allegations that its products harm the mental well-being of children and teenagers. Investors will be paying close attention to ad numbers after Snap said Tuesday that it “observed pauses in spending” from large advertisers following “the onset of the war in the Middle East.” Meta's Growth Story Meta has been a growth machine for over a decade. The company's revenue has grown at a compound annual growth rate (CAGR) of 50% since 2012. However, growth slowed in recent quarters as Meta faced challenges from increased competition from TikTok, regulatory scrutiny, and privacy changes from Apple. Can Meta Sustain Growth? Analysts are optimistic that Meta can return to sustained growth in