(Reuters)

Meta Platforms Inc painted a bleak picture of the company’s short-term growth prospects today (October 26), forecasting fourth-quarter revenue slightly below analysts’ estimates, even as it projected its expenses will continue to soar.

The disappointing results knocked about US$40 billion off its stock market value in extended trade, with shares down 13 per cent.

The Facebook parent company beat estimates for quarterly revenue, which fell four per cent to US$27.7 billion in the third quarter ended September 30, from US$29 billion last year.

That deepened a revenue decline begun the previous quarter, when the company posted a first-ever revenue drop of 0.9 per cent, but was less steep than the 5.6 per cent decline Wall Street had expected, according to IBES data from Refinitiv.