On Thursday, Meta Platforms, the company that owns Facebook, the stocks dipped drastically which is more than $230 billion (£169 billion), a record daily loss for a US company. Investors were dismayed by the company’s quarterly results, which caused its stock to drop 26.4 percent. Facebook’s daily active users (DAUs) have deteriorated so much that it never happened in the company’s 18-year history.
As per Bloomberg’s billionaire’s index, Mark Zuckerberg’s net worth has declined to by 31 billion dollars. Mr. Zuckerberg’s personal fortune dropped so much which is equal to Estonia’s annual gross amount. Even with that decline, Mr. Zuckerberg still has a net worth of about $90 billion, making him one of the world’s wealthiest people.
Meta reported that Facebook’s DAU fell to 1.929 billion from the last three months ending in December. Through this, the metric of one of the most popular social media platforms went completely in the opposite direction. On the eve of Facebook’s 18th birthday, Meta’s stock price plummeted.
Meta announced that revenue growth might get affected as other competitors like Tik Tok and Youtube are spending less on advertising The firm estimated that for the first quarter of the year revenues were between 27 billion and 29 billion which is lesser what the analyst has predicted. It’s obvious that Meta is dealing with an end number of issues. Apple executed its App Tracking Transparency policy last year. It gives users that liberty if they at all want to be tracked by these social media giants. It is a big blow for Facebook because they make money out of it by fetching the information and giving it to the marketers. Through this they create a huge sum of revenue. Because of this situation, the company’s quarterly statistics dipped which resulted in a decrease in revenue. Meta’s competitor Tik Tok also has a huge young target audience and they are extremely popular due to this Meta’s growth has impacted in a negative way. There are also longer-term considerations to consider. Through advertising, Meta generates huge sum of money. Despite this, the company’s name has been modified to reflect a concept – the Metaverse – that does not yet exist and will not do so for many years. Still, Mark Zukerberg has decided to spend ten billion dollars in this project even chances are there people are spending their time in virtual reality.
After Google, Meta possesses the second-largest digital advertising platform. The changes, which make it more difficult for firms to target and measure their Facebook and Instagram advertising, are expected to cost “in the range of $10 billion” this year, according to the firm.
“Clearly, Meta was hit more than its competitors, while other social media platforms like Snap showed robust results, said Sachin Mittal of DBS Bank. “Clearly, Meta was hit more than its competitors, while other social media platforms like Snap showed robust results,” said Sachin Mittal, DBS Bank’s head of telecom and internet sector research. “While Apple’s adjustments have had a broad negative impact on the whole tech sector, we believe that players who rely less on targeted ads or have stronger algorithms to cope with Apple’s changes will still do well.”
On Thursday, along with the Meta share price of Twitter, Snapchat and Pinterest also slumped.