The decline in the number of Facebook users is resulting in Facebook losing users. The parent company of Facebook has announced that its profits have decreased due to a decrease in users. The company will also receive less advertising as a result of this. In the last few hours of trading, the prices of the company’s shares have fallen 22 percent.
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Additionally, the company informed the OTT platform
These disappointing results are also attributed to OTT platforms like Netflix, according to the company. The fourth quarter of last year saw Meta generate profits of $10.3 billion. This didn’t lead to a rise in daily users despite this. Despite the change of name to Metaverse at the end of October, this is the first result the company has posted since then.
Also to blame are India’s rising data prices
During the last two quarters of the year, Facebook lost nearly 1 million daily users. However, 2 billion people still use the app daily. David Weiner, the company’s Chief Financial Officer (CFO), said that adverse circumstances have reduced users worldwide. There is also the Corona pandemic in the Asia-Pacific region and the rising cost of mobile data in India. Competition service growth has been negatively impacted by these factors. Particularly youth usage has decreased.
Profits have decreased by 8 percent compared to 2020
However, the company has faced a number of abuse investigations and complaints. At the same time, executives have repeatedly claimed that Tiktok faces competition from other networks. Meta reported only 1.93 billion daily active Facebook users, instead of the expected 1.95 billion. A net profit of $10.3 billion was reported by Meteor in the fourth quarter of last year, a decrease of 8 percent from 2020, but sales remained strong at $33.67 billion.
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Shares of the company rise to $250
Meta attributed the poor performance to competition and disruptions in the supply chain, which adversely affected customers and advertisers. On the other hand, shares of Meta fell by 22 percent in after-hours trading, to $250. The company’s financial results in the fourth quarter were also negatively impacted by Apple’s advertising rules last year.
