Facebook’s Meta platform records a slump in its stock prices by $230bn. The share fell by 26.4 %. The investor’s disappointment towards the quarterly figures played a part.
Meta announced the drop in Facebook’s daily active users (DAUs) in 18 years. Mark Zuckerberg’s net had a fall of $31bn. The drop in his personal account is equal to the GDP of Estonia. With the current loss, his net worth stands at $90bn. He is still one of the richest people in the world.
The news made the top after facebook’s DAU fell to 1.929bn in three months. The biggest social media network went into reverse for the first time. The stock went down on the 18th anniversary of the founding of Facebook.
It cautioned slow revenue acquisition. Competition like TikTok and Youtube are forming a major part. At the same time, the advertisers reduced the investment. Zuckerberg explains the affected sales growth. He identified that younger audiences left for TikTok and YouTube.
The company recorded revenue of $27bn and $29bn in the first quarter. It is lower than the expectation. The company is making investments in video services. It also aims to beat Tiktok, which is a Chinese technology from ByteDance.
Meta revolves around different kinds of problems. It sold its App tracking transparency policy to Apple. This makes people the decision-maker on whether to track or not. Then, companies like Meta sell that information to advertisers. It is the way Meta makes money from the user’s information. Selling the policy to apple affected the revenue at large.
The shift of younger audiences from Facebook is also one of the major issues. Tiktok acquires most of its audience. The launch of Metaverse is still in the process. Zuckerberg already invested tons of money in it. The success rate of the project is still under the cloak.
Meta’s share price slump also affected Twitter, Snaps, and Pinterest. However, Snap’s climbed up by 60% after an hour.
Credits: BBC
