Meta reports another drop in revenue, in a rough week for tech companies

It's gotten tougher for Big Tech.

Facebook and Instagram's parent company Meta said revenue fell 4% in the three months from July through September compared to a year earlier, from $29 billion to $27.7 billion. The announcement caused shares to plunge on Wednesday, reports National Public Radi of the USA.

The company said the losses reflected uncertainty in the broader economy as companies pull back on digital advertising and struggle with inflation.

Meta's financial struggles follow a trend among similar companies. Alphabet, which reported earnings Tuesday, said revenue from Google advertising was $54.5 billion, down from $56.3 billion the prior quarter. YouTube, which also sits under Alphabet, saw a drop in ad revenue to $7.1 billion, down from $7.3 billion.

"It's tough times out there," said Scott Kessler, an analyst at investment research company Third Bridge.

"Digital advertising is challenged at this point," said Kessler. "That's because of the economy combined with the changes that Apple made."

Last fall, Apple introduced a new privacy rule in the App Store. It now requires apps to ask users for permission before tracking their data. That has made it harder for companies like Meta to target people with personalized digital ads across their platforms.