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Meta, the social media giant, previously known as Facebook, will report its earnings in a few hours. A report from the Wall Street Journal highlights that the goliath could be heading for the first revenue drop. A bad earnings report from tech stocks can result in a crypto crash.
The report also highlights that the company might also report the largest drop in the number of daily users.
The Federal Reserves will also reveal its decision on the interest rates hike after the FOMC meeting ends in a few hours. While a 100 bps hike could mean a bloodbath for stocks and crypto in general, the CME FedWatch tool shows over 70% expectation of a 75 bps hike.
Meta’s Struggle Can Result In Crypto Crash
Meta shares have slid by about 46% in the last 9 months due to a combination of macroeconomic factors and competition from TikTok. According to the analysts at FactSet, Meta is expected to post earnings of $28.9 billion for the quarter. Meta has lost more than $400 billion since February. If these losses result in a worse-than-expected earnings report, a crypto crash might follow.
Meta also faced severe backlash from its recent move to using artificial intelligence for content delivery purposes rather than based only on the followed accounts. Meta has also faced billions of dollars of losses on its Metaverse project. It is also facing stiff competition from Apple in AR/VR technology.
