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Facebook reveals a negative indicator for the first time since its inception!
The social networking site Facebook seems to be going through one of its toughest days since its launch years ago, as Facebook used to announce an increase in the number of its active users, but the company reported its first ever quarterly decline to daily users globally.
The media noted that the stock's massive drop, which immediately wiped out nearly $200 billion in market value, shows that Facebook's rebranding to Meta isn't enough to distract investors from problems in its core social media business. Not only was user growth across Facebook, Instagram and WhatsApp basically flat in the last quarter, but the main Facebook app lost 1 million daily users in North America, making the most money through ads. This drop led to an overall decrease in the number of Facebook users per day globally, which a company spokesperson confirmed was the first sequential drop in the company's history.
The Verge noted that this drop to 1.929 billion daily users from 1.93 billion in the previous quarter is likely a reflection of Facebook's growing disengagement with young people. Meta doesn't break down Instagram's user numbers, but daily users across all of its apps barely rose to 2.82, adding just 10 million users from the third quarter.
However, Meta is still very profitable: It generated nearly $40 billion in revenue last year alone, mostly from advertising.