While Apple and Alphabet recently delivered blowout quarters, Facebook imploded with company shares tumbling more than 23% in extended trading on Wednesday. The company reported disappointing earnings and gave a weaker-than-expected forecast.

CNBC reports that "The company, which was recently renamed to Meta, issued disappointing guidance for the first quarter in addition to coming up short on its fourth-quarter profit and user numbers. Facebook said revenue in the first quarter will be $27 billion to $29 billion, while analysts were expecting sales of $30.15 billion, according to Refinitiv.

Facebook said it’s being hit by a combination of factors privacy changes to Apple’s iOS and macroeconomic challenges. It blamed the lower-than-expected growth in part on inflation and supply chain issues that are impacting advertisers’ budgets.

There’s also a shift to products that don’t generate as much revenue as its core news feed. For example, people are spending more time on its Reels videos.

Facebook noted that 'On the impressions side, we expect continued headwinds from both increased competition for people’s time and a shift of engagement within our apps towards video surfaces like Reels, which monetize at lower rates than Feed and Stories."

Here are a few Key Results:

• Earnings per share: $3.67 vs $3.84 expected, according to a Refinitiv survey of analysts
• Revenue: $33.67 billion vs $33.4 billion expected, according to Refinitiv.
• Facebook also missed estimates with user numbers.
• Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected by analysts, according to StreetAccount
• Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected by analysts, according to StreetAccount

For more, read the full CNBC report.

As of 2:00 p.m. PST the stock was down 21.37% after hours as shown below.

(Click on image to Enlarge)