Domain Daily: Meta Mayhem

The Dose

  • Meta Sales Slump

  • Ford's Big Quarter

  • Comcast Disappoints


Meta Reports First Ever Quarterly Sales Decline

Facebook's parent company blamed dwindling advertising budgets for the shortfall.

The Point: On the company's earnings call, CEO Mark Zuckerberg faulted the economic downturn for Meta's lackluster results. And that's a plausible explanation. However, there might be more serious issues at play here. For example, Instagram users have revolted over the photo-sharing app's pivot to be more like TikTok. Just see this viral post as evidence (click here). But perhaps a more troubling development was flagged by Bloomberg Intelligence analyst Mandeep Singh. In referencing the company's decision to cut ad prices by 14%, the Bloomberg expert said that could be a sign that the company has an "engagement problem." If true, the company has a bigger problem than weathering an economic downturn.  

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Ford Triples Profit Year-Over-Year

The automaker beat expectations by registering $3.7 billion in profit in Q2.

The Point: This is great news for Ford and its investors. It was so good that the company said it would raise its quarterly dividend back to where it was before the pandemic. But let's take a look at the bigger picture here. The auto industry is an excellent barometer for how well supply chains are functioning. That's because of all the different parts that go into making a car. Ford's big earnings beat (68 cents per share earnings vs. the 45 cents per share estimate) signals that troublesome supply chain bottlenecks are getting resolved.  

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Comcast Broadband Subscriber Growth Falters

For the first time, the company failed to register positive broadband subscriber growth in a quarter.  

The Point: Broadband internet is Comcast's most profitable product. As such, it's troublesome to see that segment stutter. Comcast CEO Brian Roberts, however, tried to ease investor fears by calling the situation temporary. So how big was this news? Consider this: the company also reported its best profit margin ever during Q2. Despite that positive result, Comcast's shares plunged by over 9% on Thursday.  

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*Domain Money Advisors, LLC, an investment adviser registered with the U.S. Securities and Exchange Commission and an affiliate of Domain Money, has (as of this writing) the following assets mentioned in this communication as part of its managed portfolios: META