Facebook: For the First Time in Facebook’s History, it lost one million daily users in the fourth quarter of 2021.
For the first time in its existence, Meta, which is now a rebrand for Facebook, announced that its principal social media platform, Facebook, witnessed a loss in the userbase. As a result, Meta witnessed a roughly 20% loss in stock value and a $200 billion reduction in market worth, blaming rivalry from rivals like TikTok and Apple’s privacy regulations as reasons.
(also see: How To Delete Facebook Account [Permanently])
Facebook’s User and Ad Growth Is Declining
In North America, where Facebook generates the most money from advertising, the firm lost nearly 1 million daily users. Daily active users on Facebook decreased from 1.93 billion in the fourth quarter of 2020 to 1.92 billion in the most recent quarter.
The number of daily Facebook users in the worldwide market has declined even further, according to a company spokeswoman, which is the first sequential loss in the business’s history. Meta’s other social platforms, like Instagram and WhatsApp, witnessed weak user growth as well, with only 10 million new users added between Q3 and Q4 2021.
Meta’s Since its establishment in 2004, Facebook has undoubtedly been a market leader in the social media arena, with user engagement rates that have only increased. However, Facebook has been embroiled in many controversies over the years, including the Cambridge Analytica controversy and user-privacy concerns. In fact, according to a Yahoo Finance study conducted last year, Facebook was named the worst corporation. This further demonstrates that just renaming a corporation does not address its basic issues.
Now, it’s important to note that Meta has been a lucrative company, with revenues of roughly $40 billion in 2021 alone, primarily from advertising. However, the business’s Metaverse endeavours and Reality Labs projects cost the company $10.2 billion last year. It would be interesting to observe how Metaverse aids Facebook in regaining lost goodwill.
If Meta is unable to resolve Facebook’s main challenges, the social media platform is projected to lose market value and more users in the worldwide market. The corporation estimates sales of $27 billion to $29 billion in the first quarter, which is a low estimate. So, how do you feel about Facebook’s dwindling user base and ad revenue? Let us know what you think in the comments section below.
Via: The Verge