Zuckerberg has also portrayed the metaverse as the future of life on the Internet. Reels users can record short mobile-friendly vertical videos, then add special effects and soundtracks pulled from a music library. Zuckerberg also said Meta will focus on Instagram Reels, a short video feature that is similar to TikTok. "So, that is a pretty significant headwind for our business," he said.Īfter 18 years of having users "like" their platform, Facebook is now facing increasing competition from other social media applications, particularly from TikTok.Ī Bloomberg report said Zuckerberg told staff on Thursday that the company was facing an "unprecedented level of competition" from TikTok, which now has more than one billion users worldwide. Meta's chief financial officer, Dave Wehner, told analysts on a conference call that the impact of Apple's privacy changes could be "in the order of US$10 billion" for 2022. With many choosing to opt out, this translates into less user data for the platform and in turn impacts targeted ads, one of Facebook's main sources of income. The changes require apps such as Facebook to ask users for explicit permission to track their activities “across other companies’ apps and websites”. CHANGES BY APPLEĪnother change that Meta said would hit its bottom line was Apple's privacy changes to its iOS operating system. Research firm Insider Intelligence has also said it expects Instagram's growth in monthly users to fall to 5.8 per cent this year and 3.1 per cent by 2025, from 16.5 per cent last year. In Meta's earnings call, Zuckerberg said competition for users was one factor impacting the business, mentioning short video app TikTok by name.įacebook saw its user numbers drop for the first time in its 18-year history last quarter, falling by about half a million to 1.929 billion daily active users.
Analysts were expecting US$30.15 billion, according to IBES data from Refinitiv. In reporting fourth-quarter results late Wednesday, Meta forecast weak guidance for the March quarter, saying it expected first-quarter revenue in the range of US$27 billion to US$29 billion. Meta saw investors flee on Thursday after the tech giant issued a dismal forecast, blaming Apple's privacy changes and increased competition. How did this happen and where will Meta go next? WHAT WAS THE TRIGGER? The fall saw Meta chief executive Mark Zuckerberg's personal net worth plunge by US$29.8 billion - the second-largest single-day loss ever after Tesla CEO Elon Musk's loss of US$35 billion in November last year. Meta's stock slide invoked memories of the bursting tech bubble in 2000, spreading to the wider market and dragging the Nasdaq down 3.7 per cent, its worst day in 17 months. Though the company - which also owns Instagram and WhatsApp - has previously been in trouble over concerns about user privacy as well as its platforms' role in spreading misinformation, Reuters said Thursday marked not just its worst one-day loss ever, but the biggest single-day slide in market value for a US company. SINGAPORE: Internet giant Meta, the parent company of Facebook, made headlines after its stock tumbled 26.4 per cent on Thursday (Feb 3), erasing more than US$200 billion from its market value.
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