There is the first time in its history, Meta, now known as Facebook, reported a decline in its preferred social media platform’s user base. Since then Meta’s stock value has fallen nearly 20% and its market value has dropped $200 billion due to TikTok and Apple’s privacy policies, respectively.
Facebook Lost 1 Million Daily Users in Q4 2021
More than a million daily Facebook users have left the region where Facebook turns a profit from advertising. In the fourth quarter of 2020, Facebook’s daily active users were 1.93 billion. In the current quarter, they were 1.92 billion.
A Facebook spokesperson confirmed that this is the first time in the company’s history that the frequency users of Facebook has decreased sequentially. Other Meta social platforms like Instagram and WhatsApp saw slow user growth, adding only 10 million new users between the third and fourth quarters of 2021.
Meta’s Since its inception in 2004, Facebook has grown from strength to strength as a social media darling. The Cambridge Analytica scandal and other privacy-related issues have dogged Facebook for some time now. As a matter of fact, Facebook was named the worst company on Yahoo Finance’s annual list in 2013. A company’s core problems can’t be solved simply by rebranding.
In 2021 alone, Meta made $40 billion in profit, most of which came from advertising. For its Metaverse and Reality Labs projects, Google suffered a loss of $10.2 billion last year. It’s not yet clear how Metaverse will help Facebook reclaim the public’s trust.
If Meta can’t find a solution to Facebook’s core problems, the social network is expected to lose more users in the global market in the future. First-quarter revenue is expected to be in the range of $27 billion to $29 billion. Do you think Facebook’s user base is shrinking and its ad revenue is increasing? please share your thoughts below.