Facebook Loses Users While Parent Company Meta Shares Dip More Than 23%
Meta recorded an unexpected dip of more than 23% in their shares, during trading early this morning. This has reduced the value of their share to $246.76. The 23% dip represents 215 billion of the company’s overall market value.
The drop is the largest the company has ever experienced, however, on July 26, 2018, Facebook’s market value fell $120 billion. The company cited that the drop is attributable to an increase in investments as the company transforms into a virtual reality-based company.
The social media giant also said that its profit declined by 8%, which represents 10.29 billion in the last three months of 2021.
Facebook’s parent company also reveals that it is finding it increasingly difficult to advertise to potential customers due to recent privacy changes made by Apple. The new changes limit the company’s ability to track people’s activity online, thereby reducing their advertising reach. The fallout is estimated to cost the company $10 billion, according to their chief financial officer.
Meta’s massive investment in its Reality Labs segment at a cost of 10 billion also contributed to the company’s inability to secure greater returns in revenue. The Reality Labs rolled out its virtual reality headsets and augmented reality technology last year.
The company is also expecting a decrease in revenue this quarter, citing competition from one of its main rivals, Tik Tok.
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