For the first time ever, Facebook has started to lose its customers. Yes, it’s true. Facebook, a company that had been started in 2003 as an online service for students, attracted a wide range of audiences from the beginning. Since then, people have loved this popular app which had also started the option to create a short-form video feature in August 2020. This was much similar to TikTok and Instagram reels.
During the pandemic, Facebook started to transform into meta, especially turning into a metaverse company. It is focused on building a unique, helpful virtual-reality based internet surfing platform. It aims to introduce more and more VR platforms through conducting various research along with huge developments. So far, this unique transition from a popular social media company into a metaverse one has gained huge attraction amongst customers.
Facebook had been struggling to compete with the most popular shirt-video app TikTok. This resulted in a loss of its customers for the very first time in its complete 18-year-old history. The shares of Facebook’s parent Meta platforms Inc. sank terribly after the popular social media company fell short with its outlook.
Meta has been experiencing immense pressure from Tiktok’s rise. It influenced an apple privacy change which has been one of the roughest Meta conference calls in years. The stock plummeted about 26% in its specific Thursday trading, and this resulted in its worst-ever single-day percentage decline on the records.
The company’s expenses experienced skyrocketed budgets as it poured $10 billion in its augmented and virtual reality hardware store to build its unique “metaverse”.
Also Read Bahrain launches Golden Residency Visa
This massive stock percentage downfall shaved around $230 million off the entire company’s market value. This is the largest ever single-day decline for any US company on records. Along with this meta’s intriguing reports questioned the future of this popular social media platform. Though it has been losing customers but still contains an attractive financial profile.
This wasn’t just Facebook fighting with the erect brick wall of its user growth. It was similar to a horror film killing the victims one by one. More and more hits kept flooding when meta reported its earnings for Wednesday.
In a certain securities filing, Meta had warned: “Any future declines in the size of our active user base may adversely impact our ability to deliver ad impressions and, in turn, our financial performance.”
However, the massive shrink of Facebook’s daily users combined with a company forecast where it elaborated its slow revenue growth. Meta shared in its after/hour trading Wednesday about a death rattle that even plunged into its Thursday earnings. It hit shares of various shares of other social media stocks and even the market as a whole.
Visit – The International Magazine