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Facebook's Red February
Summary: Meta Platforms Inc., formerly known as Facebook, has started off Feb. in the red. Meta has dropped 87 points since the beginning of the month, and unfortunately, this red isn't Valentine's day special. In short, Apple has made it much more challenging for Facebook to collect data, leading to a $10 billion (equivalent to 8% ...
Meta Platforms Inc., formerly known as Facebook, has started off Feb. in the red. Meta has dropped 87 points since the beginning of the month, and unfortunately, this red isn't Valentine's day special.
In short, Apple has made it much more challenging for Facebook to collect data, leading to a $10 billion (equivalent to 8% of last year’s revenue) loss in the California-based company’s ad revenue, according to Meta’s CFO Dave Wehner.
In addition, Meta, Facebook’s parent company, reported a decrease in 1 million users over the last three months in 2021. That makes it the first time ever that Facebook has lost that many users.
CEO, Mark Zuckerberg, noted in the company’s earnings call, that the social media juggernaut is facing stiff competition.
"People have a lot of choices for how they want to spend their time and apps like TikTok are growing very quickly," Zuckerberg said. As a result, they will continue to promote Instagram’s reels, in order to compete with the short video format Tik Tok popularized.
However, the company still makes a staggering $40 billion in profit per year, according to Statista. So while they are surely unhappy with their Q4 numbers, they can at least rest on their profits.
Author: Tyler Irvin
