For The First Time In History, Meta Revenues Fell

For the first time in history, Meta revenues fell

For the first time in history, Meta revenues fell

Meta, the parent company of Facebook and Instagram, reported revenue of 28.82 billion dollars in the second quarter of 2022, which represents a slightly lower figure than the 28.94 billion expected and a decrease of 1% (29.077 million dollars) compared to same period of the previous year, according to the report presented on Wednesday.

It’s the first time the Menlo Park, California-based social media giant’s revenue has fallen since it went public in 2012. In fact, at the close of trading, its shares were down roughly 4.6% and closed at 169.58 dollars.

 

The company reported a net profit of 6,687 million dollars, which implies 36% less than that registered in the same period of 2021 when it doubled its profits (10,394 million dollars).

 

Meta attributes this drop to a decline in demand for digital advertising and economic uncertainty.

For the first time in history, Meta revenues fell
For the first time in history, Meta revenues fell

As for the more encouraging numbers in the report, Meta noted that its “daily active users” rose to 2.88 billion, up 4 percent from a year ago. This means that every day 2,880 million people use one of the applications that make up this group: Facebook, Instagram and WhatsApp.

Mark Zuckerberg had anticipated in early July that his firm was going to reduce plans to hire engineers by at least 30% this year, an unprecedented situation for the social media giant.

 

Among the directions the company is taking is “turning Instagram into TikTok,” with a focus on short, vertical videos, which earned it widespread pushback from its users for “Instagram going back to the way it was before.” , reaching out to Kim Kardashian, a popular figure on the app with 326 million followers.

But its strongest bet is long-term investment in virtual reality hardware and the development of its own metaverse.

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