Meta joined Alphabet and Microsoft in releasing disappointing quarterly financials, following the company’s Q2 earnings call. In a week of a disappointment for mega-cap stocks, the trio has all missed revenue and earnings expectations, with Meta seeing its first quarterly sales decline ever recorded.
Due to the current global economic slowdown, markets had anticipated that earnings of mega-cap stocks which account for 40% of the Nasdaq, and 30% of the S&P 500 could face a bloodbath.
However, although earnings have disappointed, and came in worse-than expected across the board, some analysts suggest that the situation might have been more dire.
The International Monetary Fund (IMF) recently announced that it was revising its 2022 global GDP forecast, from 3.6% at the start of