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On October 29, 2023, Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT) reported earnings. Meta’s shares dropped over 7% in after-hours trading amid strong revenue results, highlighting an unexpected $16 billion tax charge that led to a significant decline in earnings per share (EPS).
Meta reported revenue of approximately $51.24 billion for Q3 2023, a 26% increase compared to previous estimates of $49.34 billion. However, EPS fell to $1.05, an 83% drop from the same period last year, while analysts had projected it to be $6.74. Meta’s daily active users grew by 8%, and ad impressions increased by 14%, marking its best performance metrics since Q1 2024. The company’s R&D spending equated to 30% of revenue, growing faster than anticipated expenses for 2026.
The unexpected financial burden has raised concerns over Meta’s future profitability and expenses, leading to a cautious outlook following its mixed Q3 results.
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