Due to the unpredictability in the Middle East region, Meta has expanded its revenue guidance range.

• Meta's finance chief, Susan Li, stated that the company gave a broader revenue guidance range due to the uncertainty of the Middle East conflict.
• Li stated that in the beginning of the fourth quarter, we noticed softer ads, which coincided with the commencement of the conflict.
• Meta anticipates revenue for the fourth quarter to be between $36.5 billion and $40 billion.

On Wednesday, Meta provided guidance for the fourth quarter, with a significant difference between the low and high estimates.

The range of $3.5 billion ($36.5 billion to $40 billion) is significantly higher than the typical $2.5 billion range provided by the company in its quarterly revenue forecast. Susan Li, Meta's finance chief, explained to analysts on the earnings call that the reason for the change is the unpredictability in the Middle East due to the Israel-Hamas war.

Li stated on the call that we noticed softer ads at the start of the fourth quarter, which coincided with the beginning of the conflict, as reflected in our Q4 revenue outlook. However, it is challenging for us to directly attribute the demand softness to any particular geopolitical event.

Meta, according to Li, does not have direct exposure to Israel, but historically, the company has observed demand softness following other regional conflicts, such as the Ukraine war, after Russia invaded its neighbor in early 2022.

According to LSEG, formerly known as Refinitiv, at the mid-point of its guidance range, it was expecting revenue of $38.25 billion, which is lower than the average analyst estimate of $38.85 billion. In the third quarter, Meta beat on the top and bottom lines, leading to an increase in its shares in extended trading on Wednesday.

On Tuesday, cautionary statements from Meta were followed by Meta's commentary on the escalated Middle East conflict, which occurred this month after Hamas attacked Israel.

Snap has observed a decrease in spending from brand-oriented advertising campaigns after the start of the war in the Middle East, which is negatively impacting its current quarter's sales.

Snap forecasts its fourth-quarter sales to be between $1.32 billion and $1.38 billion, lower than the $1.33 billion expected by analysts. The company cited the unpredictable nature of war as the reason for not providing official guidance.

On Wednesday, President Joe Biden emphasized that the U.S. is committed to securing the release of all hostages held by Hamas. In a White House address, he also underscored the need for a "two-state solution" to resolve the conflict in Israel and Gaza.

Gaza hospitals are at risk of shutting down due to a lack of fuel, as they also face shortages of water, medicine, and food.

WATCH: Meta’s profits have to go up next year