There was a big fall in the shares of Facebook’s parent company Meta on Wednesday.
Shares of Facebook’s parent company, Meta, crashed on Wednesday. Interestingly, the company is facing a bad quarterly result due to various reasons. On Wednesday, the company presented its fourth quarter results, after which its shares saw a fall of up to 22 percent. Its profit declined more than expected. There has been a big decline in the active users of Facebook. Due to many reasons its user base has decreased and its ad business has also been affected. The company says that its ad targeting business has been affected due to a policy of tech giant Apple.
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Global markets are already witnessing huge volatility. In the recent past, companies like Netflix have also had to face the consequences of poor quarterly results in the market. Now Meta has reported a lower-than-expected $10.3 billion profit in its quarterly results and Facebook’s daily user growth has also fallen, after which its shares fell 22 percent.
What is the condition of Facebook’s user base
By the way, the user base on the Facebook app is about two billion users everyday. In such a situation, losing 1 million daily users worldwide is not a big figure, but still such a decline is a sign that everything is not going well for Facebook. The company’s CFO Dave Weiner told analysts that user growth has been affected due to ‘unfavourable wind’. In fact, growth has slowed in Asia-Pacific, while the increase in mobile data prices in India has also reduced users.
Apart from this, Wiener also considered several other platforms attracting young customers as the reason behind influencing the growth.
Analysts had expected Facebook’s daily active users to be 1.95 billion, but it stood at 1.93 billion in Meta results. Since Facebook is such a company, which is user based, that is, functions on the interaction of people, their use, in such a situation when users are less then it is bound to be affected.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)