People are leaving Facebook after years of public scandals, fiascos, and whatnot. On Wednesday, Meta-owned Facebook reported its first-ever quarterly decline in users. It also reported weaker-than-expected growth that plunged Meta’s stock by almost 20 percent.
The stock drop immediately made Meta lose $200 billion in market value, signifying that Facebook’s rebrand wasn’t enough to cover their tracks. Likewise, the platform’s global daily active users declined to 1.929 billion from the previous quarter’s 1.930 billion.
However, it didn’t take much time for Meta to start playing the blame game. It alleged that it faced hits from Apple’s privacy changes to its operating system, making it harder for brands to target and measure their ads. The company also pointed at other industry issues like supply chain disruptions.
Not only did Facebook lose daily active users, but its user growth across other apps was also negligible. The stagnant growth across Facebook apps is likely a consequence of public allegations from users.
Furthermore, Facebook, which faces competition from TikTok and YouTube, said it saw this coming. According to the company, the slower growth was due to increased competition of the user time towards other features. Users can now show more engagement towards short video features like Reels, which generate less revenue across all platforms.