𝙵𝚊𝚌𝚎𝚋𝚘𝚘𝚔 𝙵𝚊𝚕𝚝𝚎𝚛𝚜 𝙰𝚏𝚝𝚎𝚛 𝚁𝚎𝚋𝚛𝚊𝚗𝚍
By now you've probably seen that the artist-formerly-known-as-Facebook has had a rough February, notching up the biggest one-day loss of value in the stock market's history.
Meta's 2021 revenue was up 37% on last year, and the company delivered a cool $47bn of operating profit — so you'd be forgiven for wondering why investors wiped ~$230bn of value from the company.
In short, Meta has a few problems:
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Apple's privacy change: Targeted advertising has gotten more difficult since Apple's new tracking update, making Facebook ads less effective, and hurting demand.
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TikTok: Facebook is losing users, particularly younger users, to TikTok. The core Facebook platform lost daily active users for the first time ever.
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The metaverse isn't here yet: Reality Labs, Facebook's augmented and virtual reality division, is a big cash sink, and will likely remain so for a while.
𝙲𝚑𝚊𝚛𝚝𝚛 | 𝙳𝚊𝚝𝚊 𝚂𝚝𝚘𝚛𝚢𝚝𝚎𝚕𝚕𝚒𝚗𝚐
