Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, saw its stock price tumble despite exceeding earnings expectations in its latest quarterly report. The disconnect lies in the company’s outlook for the future.

While Meta reported strong revenue growth and beat analyst estimates for earnings per share, investors were spooked by the company’s weak guidance for the upcoming quarter. Meta raised its projected full-year expenses and offered a cautious outlook, suggesting potential headwinds for future growth.

This cautious approach comes amid ongoing challenges for Meta, including rising competition in the social media space, increased regulatory scrutiny, and a slowdown in advertising spending. The stock price decline reflects investor concerns about Meta’s ability to maintain its momentum in the face of these obstacles.