Meta saw its turnover fall for the first time in its history

This is only a drop of 1% but it is historic. For the first time, Meta, the parent company of Facebook, Instagram and WhatsApp, saw its quarterly turnover decrease, according to an announcement made by the group on Wednesday July 27. “We need to do more with less resources”said the head of the social media giant, Mark Zuckerberg.

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Amid competition from other platforms such as TikTok and advertiser budget cuts due to poor economic conditions, Meta’s revenue fell 1% in the second quarter, to $28.8 billion, compared to the second quarter. quarter of 2021. Like the net profit, it decreased by 36% to 6.7 billion.

“The situation seems worse than three months ago”, acknowledged Mark Zuckerberg during a conference call with analysts. It plans to slow down the pace of investment, especially in “reduced staff growth in the coming year”. Meta has nearly 84,000 employees worldwide, 32% more than a year ago.

On Wall Street, the company’s shares fell more than 4% during electronic trading after the close of trading.

Two million less monthly users for Facebook

In terms of audience, Facebook increased the number of daily active users to 1.97 billion, but lost 2 million monthly users. In total, as of June 30, 3.65 billion people around the world used at least one of the four networks and group messengers – Facebook, Instagram, WhatsApp and Messenger – every month.

Meta has been viewed like milk on fire in the market since the beginning of the year, when the group first announced that it was losing users to its original social network, Facebook. Around one million daily active users left the platform in the last three months of 2021.

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Since early February, the share price has halved and more than $400 billion in market capitalization has gone up in smoke.

The second largest digital advertiser in the world derives its power from its ability to precisely target hundreds of millions of users, in an environment where they spend time every day, socializing or having fun . “But Meta has lost its grip on its large audiencefound with Agence France-Presse (AFP) Debra Aho Williamson, Insider Intelligence analyst. Facebook’s US user base is barely growing, and while Instagram is helping to move the boat forward, we’re starting to see a slowdown among teenagers and young adults. »

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Criticized on Instagram

The photo and video app was mocked this week, when celebrities Kim Kardashian and Kylie Jenner called it out on “Become Instagram again” and on “Stop trying to be TikTok”, a message widely applauded and expected by users. Meta, like Google on YouTube, actually copies the format of short and attractive videos from TikTok, published by creators and recommended to users thanks to a very powerful algorithm.

Mark Zuckerberg confirmed this orientation. He said that currently about 15% of the content that can be found on Facebook and Instagram users comes from algorithm recommendations. “These numbers should at least double by the end of the year”he specified.

The major platforms also suffered from Apple’s changes to its data privacy policy, which reduced their reach to personalize ads.

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Last week, Snap plunged 40% due to disappointing financial performance, despite a dramatic jump in the number of Snapchat users. And Google on Tuesday posted its slowest year-over-year revenue growth rate since the second quarter of 2020. Both companies, like many other tech companies, are increasingly slowing in the course of hiring.

These difficulties hampered Meta in his efforts to build the metaverse, a parallel universe accessible by augmented and virtual reality (AR and VR) and presented as the future of the internet.

On Wednesday, the US competition authority (FTC) also launched proceedings against Meta to prevent it from acquiring Within Unlimited and its physical exercise application VR Supernatural. The FTC sued the American group “to buy market shares instead of getting them on merit”as it allegedly happened when it acquired Instagram and WhatsApp messaging in the 2010s.

Listen too In search of the metaverse

The World with AFP

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