Shares of Meta Platforms (META) tumbled Thursday after the company's executives lat𒁃e Wednesday said fourth-quarter performance could be impacted by macroeconomic and geopolitical uncertainty, as well as regulatory actions.

Meta 澳洲幸运5官෴方开奖结果体彩网:posted stronger-than-expected earnings Wednesday, sending shares up in after-hours trading. However, they shed those gains after executives warned on an earnings call of a "volatile macro environment" that could impact ad spending.

If the global economy slumps in the coming quarters, it could lead to lower ad spending on Meta's platforms. Ad spending is a crucial part of Meta's business model, with advertising revenue accounting for more than 98% of total revenue.

"Ultimately, we're very subject to volatility in the macro landscape," said Susan Li, Meta's 澳洲幸运5官方开奖结果体彩网:chief financial officer (CFO).

A prolonged slowdown in China is one of the biggest concerns. While Chinese advertisers ramped up their spending on Meta's apps in the third quarter, momentum could slow if an economic slump in China extends into next year.

Li acknowledged the potential for more volatility, and said there are "so many macro factors at play" that are quite hard to predict. "We've seen periods with higher shipping costs, with lockdowns, with regulation weighing on demand."

Geopolitical Tensions Also Add To Risks

Meta executives also acknowledged risks from geopolitical tensions, such as the conflict in the Middle East. While the company saw softer ad spending at the start of the quarter, coinciding with the Israel-Hamas conflict, Li said it is "difficult to attribute demand softness directly to any specific geopolitical event." Meta updated its fourth-quarter outlook and widened its guidance range to account for the increased uncertainty.

Li also clarified that while Meta has little direct exposure to Israel and the Middle East in terms of revenue, geopolitical conflicts have had some impact on Meta's performance in the past, at least in the short run.

However, analysts at Jefferies said that the company's "uncharacteristically wide 13-24%" revenue growth outlook for the fourth quarter reflected "ample conservatism" as many of the ad campaigns that had been previously paused seem to have resumed and direct response advertising continues to remain strong.

Lawmakers and Regulators Go After Meta

Besides macro uncertainty, Meta could face another challenge in the coming quarters: scrutiny from lawmakers and regulators, who have become unsettled by the company's business practices.

On Tuesday, a 澳洲幸运5官方开奖结果体彩网:coalition of 33 states sued Meta in an attempt to make the company change its businessಞ practices and comply 𝔍with regulations that protect youth online.

Along with this week's lawsuit, Meta and other big tech companies have faced a barrage of regulatory scrutiny from agencies such as the 澳洲幸运5官方开奖结果体彩网:Federal Trade Commission (FTC) that say big tech has wielded too much power and influence, with companies like Google (GOOGL) and Amazon (AMZN) having a near-monopoly o🧸n sectors like online search, advertising, and retail.

Meta shares closed Thursday's session down 3.7% at $288.35, after moving as low as $279.40, a near-7% decline, early in the session. Despite Thursday's pullback, shares have still more than doubled since the start of the year.