The behemoth size of tech companies like Facebook is bound to experience crashes that can shake the market. Something like that happened to facebook’s parent company Meta. The historic plunge of Facebook’s parent company wiped $230bn from the market. Easily the biggest one-day losses in the history of US companies.
It’s not the first time Meta has seen a huge plummet in stock prices. The stock plunged 19% in July 2019, as a result of slow user growth.
The tech experts are marking this meltdown as the beginning of the end for Facebook.
Apart from wiping out $230bn from the market, there are a couple of other incidents that mark the indicators of facebook’s declining landscape.
Why Did Meta Stock Crash?
1) Meta, formerly known as Facebook, said in its fourth quarterly earnings call, that their daily active user has seen the lowest active since its inception in 2004. Facebook has seen the lowest turnout of the audience in the last 3 months of 2021. Experts say that Facebook’s ability to engage and the onboard new audience has reached its peak.
2) The company posted net revenue of $10.3 billion in the final 3 months of 2021. Which was 8% lower than the previous year. The lower user turn-out ratio is impacting the advertising costs and hence the revenue.
3) Meta also reported a loss of $10 billion of operating revenue loss due to its investment in the AR and VR unit. Zuckerberg already reported that the company earnings will be below $10 billion and Meta will now witness any real profit in the near future. But investors are resistant to making big bets for a long-term investment.
4) Meta is facing increased competition from video stars such as TikTok as well as a messaging platform like Slack and telegram.
5) The firm is also investing heavily in Reels and Whatsapp stories to stay in tune with users. It means it is spending money on services that are harder to monetize compared to the Facebook ad mechanism.
6) Meta relies heavily on its advertising capabilities and Apple’s new rigorous privacy policies are affecting advertising efficiency. The new policy tells application publishers to seek permission before sharing the data. Since most users are opting out of it, making the ads ineffective. Thus, less profitable.
7) Regulators across the US are trying to curb the power Facebook has in the tech world. The anti-trust case is being reworked and Facebook’s monopoly in owning similar companies like Instagram and Facebook. The case could go on for years without any settlement. Resulting in trust issues with the investors.
Conclusion
Tiktok is hurting Instagram’s growth too. Experts say that Instagram is currently the most profitable venture of meta, and they will focus on making it more successful in the coming future.
Accelerate your leads and sales today Digitalzone puts your B2B leads and sales on steroids.
Using a global B2B database of 71 million companies, we have created and managed 46,872 successful campaigns for companies based in the USA.
We help B2B companies, just like yours, with Account Based Marketing, Content Syndication, Intent Based Marketing, Lead Generation and List Building.
Get in touch with us today, to accelerate your sales.
Did you like the article you just read?Let us hear your comments below! And do share this article with friends or colleagues who’d benefit from it.
What Is The Goal Of Demand Forecasting? You need to increase conversion rates and close…
THE PROBLEM If you’re a B2B company, prospecting and generating leads is probably one of…
Preface Digitalzone has been in the B2B marketing industry since 2013 and over the years…
Syndication is when you promote original web content, including articles, blogs, and videos, on other…
Benchmark Your Partner Performance Content is a valuable marketing tool - not just when it…
A quick start guide to intent based marketing Throughout the history of B2B marketing, marketers…