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Facebook Losing Users, Stocks Plummet by 20%
Facebook‘s stock value dropped by more than 20% Wednesday, as the company reported losing users for the first time. Meta Platforms, the owner of Facebook, posted a weaker-than-expected forecast.
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Facebook Losing Users
For the first time, Facebook’s global daily active users declined from the previous. Between the two previous quarters, the company’s daily users numbered from 1.930 billion to 1.929 billion. This is the first time that the company experienced losing users in between quarters.
In addition, the social platform reported 2.91 billion monthly active users during the fourth quarter. This means that Facebook did not generate growth compared to the previous quarter.
Apple’s New Privacy Policy Isn’t Just Losing Users
Meta pointed to a number of reasons for the decline. First, it blamed Apple’s changes to its privacy policies. It said that Apple’s operating system update made it harder for brands to target and measure ads on Facebook and Instagram.
Apple’s strict privacy changes won’t allow the use of private information unless the user specifically approves apps to do so.
In addition, Facebook is also facing increased competition from rivals TikTok and Google’s YouTube. These platforms focus on producing short video content that many users prefer over reading.
As a result, Facebook expects slowed revenue growth in the upcoming quarter.
As users gravitated towards short videos via Facebook’s Reels, users posted shorter engagement times. Reels, due to their short playtime, generate less revenue.
Meta Loses $200 Billion In Market Value
Consequently, users felt disappointed with Meta’s projections. The company shredded $200 billion within hours of its announcement.
Other social platforms such as Twitter, Snap, and Pinterest also lost a combined $15 billion. Meanwhile, Alphabet, the parent company of Google and YouTube, saw its share prices drop by 2%.
Previously, Meta warned about the effects of Apple’s changes in privacy. Apple’s decision pushes Facebook’s advertising business into significant uncertainty in the fourth quarter of 2021.
During a conference call, CFO Dave Wehner told analysts that Apple’s changes can cost Facebook around $10 billion in 2022.
With its adjusted numbers, Facebook now forecasts between $27 to $29 billion for its first-quarter revenue. Wall Street analysts are looking at $30.15 billion.
Competition For Daily Users
Unless Facebook stops the trend of losing users, it’s going to remain a downhill path for the social giant. Wehner said competition for users remains a major factor that’s impacting the business.
He mentioned the current popular video app TikTok by name. At the same time, he also emphasized Meta's commitment to providing services for young adults.
Watch the Stock Market Bible video featuring Facebook Quarter 4 Earnings: Stocks Tank Hard
Loading ...What do you think about Facebook’s first instance of losing users? Is this a beginning trend of people moving out of Facebook into newer social platforms? Or, is there growing disinterest in social media as a whole?
Tell us what you think. Share your comments below.
12 Comments
Facebook acting like police and putting people in Facebook jail and deleting comments that they have no business even messing with is the reason they’re declining and as long as they keep this practice up it’ll get worse and worse because people are tired of it
Shawn it’s their platform if you don’t like their rules you shouldn’t be there you have no right to tell someone how to run their business it’s actually quite sad you can’t realize your own sides talking points they obviously know what they are doing with uh idk several billion daily users worldwide maybe just maybe they know more than you I surely do and I’m just another libtard…stupid nazis don’t even know they are nazis like the people who supported hitler they had no idea they were being led to being monsters keep following idiots like trump and you’ll be the same
Branden you are right about it being their platform and if you don’t like the rules you should leave. That is why they are losing users like myself. I feel their rules are biased and I don’t want to be part of their platform. As for idiots, Biden is the biggest idiot that was ever in the White House.
Hey Branden
thats why we have STUPID Americans that are being led back into Slavery making people believe that they cant use their God-given brains and talents to NOT STEAL NOT KILL GET EDUCATED be productive members of society the government today is just as dangerous as hitler its ignorant people that cant see it!!! support china while your at it stay on TikTok keep buying their products….keep electing corrupt politicians that are lining their pockets with our tax dollars
Branden, learn to write properly. Your words might then have some kind of impact.
They are locking people who are on the RIGHT out of their pages, because I was one of them, and they said their decision could not be changed!!!! This is also why they are loosing people!!!!
When you become a star-chamber of blocking comments you become what China is today and looks like America is catching up! They are doing it now as weblog! I noticed this when the Top Gun Maverick movies and his jacket and Americans anger of his two Asian patches being removed! With Biden, I am sure they run him and his party!
Branden is so ignorant and busy playing with his joey pedo biden dildo that he can’t habe a clear thought or articulate a rational thought. Keep using your fagbool and selling out America for a communist using his platform to violate thr 1st A and censor America. I guess you’re not aware he’s using his platform to control news and plant ignorant, illiterate “reporters” in news branches across the country. And it’s not their rules, it’s that their rules only apply to some. Stop doing drugs and gdt out of your mommy’s basement. Xiden has accomplushed nothing other than desteuxtion and the ruinatiin of America. But hey, hopefullly people like you will suffer the greatest!
Branden – Someone who doesn’t know English punctuation very well shouldn’t be telling other people what to do. You and your ilk are the Nazis. Your liberal friends tell the conservatives what they can and can’t do or say every day. You are also guilty of it. Facebook is social media that is supposed to be for friends and family to post comments on whatever. There used to be freedom for all on that social media but now it boils down to freedom for terrorists (and I’m speaking about ISIS, Al Queda, and every other terrorist group) and liberal idiots like MSM including CNN and MSNBC. They don’t get banned. They can post whatever they want to post without fear of FB jail or banned from the FB altogether.
If you are a social media where you can communicate with other people about anything you want to talk about you should not have socialist communists police checkers decide about your subject that you are talking about because if you don’t like it just turn it off don’t communicate with that person . I don’t like that someone makes the decision for me. So as far as I am concerned I do not associate myself with socialist communist I will not contribute a dime to their bottom line Most Americans are very nieve when it comes to politics I have lived under socialist Communist rule and I can tell you it’s not pretty
Running a business does not mean being able to stimy free speech. Of course, in your liberal world, it is ok to shut down opposing views. Especially when you can’t back up what you say.
LET’S GO BRANDEN.
Facebook is determined to destroy our country by allowing only liberals to post their disingenuous information rather than allowing commonsense, which destroys their basic reason for being.