New York, DTU
Facebook, one of the founders of social media platforms in the world, is now facing stiff competition from TikTok and YouTube. As a result, for the first time in Facebook’s 18-year history, its daily user base has decreased. Facebook, which has faced global criticism due to several controversies, lost half a million daily users globally in the December 2021 quarter. The rise of Tiktok and YouTube in the world has now become a threat to the monarchy of Facebook on the social media platform. Not only this, due to poor results of December quarter, Facebook’s market cap has increased by Rs. 12.5 lakh crore and CEO Zuckerberg’s assets are Rs. 1.5 lakh crore loss.
The company announced its first quarterly results after renaming Facebook. Meta said profits were impacted by a drop in the number of users in the last quarter of 2021. This will have a direct impact on the advertisements received by the company. Facebook had 2.31 billion daily active users in the fourth quarter of 2031. There was no increase in this number as compared to the previous quarter. Meta suffered the highest daily users in North America. Meta made the most money from advertising.
Facebook’s daily active users around the world stood at 1.50 billion in the last quarter, which has now dropped to 1.4 billion. Analysts expected Facebook to have 1.2 billion users. Beginning in 2009, the number of Facebook users has declined for the first time. Apart from this, the growth in the number of users of other meta apps like WhatsApp, Instagram has also been less overall.
Meta’s chief financial officer Dave Weiner said the company’s revenue is expected to be lower than expected in the next quarter. Within hours of the announcement, Meta’s shares were down 2.4 percent to 2.08. As a result, the company’s market cap fell to Rs 200 billion (about Rs 12.5 lakh crore) in a single day. Mark Zuckerberg’s fortune has plunged by more than 2 billion since the meta platform’s shares fell 7%, marking one of the biggest drops in personal wealth in a single day in history. Earlier in November 2021, the wealth of the world’s richest man and Tesla CEO Elon Musk had decreased by US$ 3 billion in a single day.
For the first time since 2014, the Facebook CEO has been dropped from the list of the world’s top 10 billionaires with a net worth of billions of dollars in a single day. Mark Zuckerberg’s net worth fell to 2 billion (about Rs 4.5 lakh crore) from 120.5 billion (about Rs 4.01 lakh crore) on February 2, according to the Bloomberg Billionaires Index.
Meta Inc. has reported weaker-than-expected fourth-quarter results as well as a weaker-than-expected outlook for the first quarter of this year. The company’s net income for the December quarter was 10.8 billion, and earnings per share fell to 2.3 billion from 2.2 a year ago. However, total revenue grew 20 per cent year-on-year to 4.5 billion. Analysts had expected earnings of $4.5 billion, or $4.5 billion, per share.
Meanwhile, Meta CFO Dave Weiner said one of the reasons for the slowdown in Facebook’s overall growth in the December quarter of 2018 was a 3% increase in prepaid data prices by telecom companies in India. “Corona has slowed user growth in Asia Pacific and the rest of the world,” he said. In India too, growth was limited by the increase in data package prices.