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Facebook Witnesses Massive Share Plunge In Face Of Competition From TikTok

As per Zuckerberg, Meta’s head, the growth of TikTok is taking people’s online time away from Facebook and this is having serious effects on marketing.

Facebook Witnesses Massive Share Plunge In Face Of Competition From TikTok

Last Wednesday the share value for Facebook, now renamed Meta, witnessed a plunge of 1/4th of its original amount. Officials have stated that this is primarily due to competition from TikTok and a massive change in the form of online advertisements. The Asia Pacific market showed very poor performance for the social media giant in the last quarter and growth levels, in general, were extremely low.

The total market capitalization lost by Meta amounts to roughly $175 million. While their last quarter revenue did increase by around 20%, to $33.7 billion; their net profit dropped significantly to $10.3 billion. This is the first time they have taken a net profit decline in the past two years. Their next quarter projection is $29 billion, showcasing an 11% increment.

Zuckerberg, Meta’s head, said in a recent interview that the growth of TikTok is taking people’s online time away from Facebook and this is having serious effects on marketing. Furthermore, with Apple’s updated policies advertising has become more difficult. The company is also trying to launch new products, mainly the Metaverse, a VR-based social media platform, and also a reels platform for competing with TikTok.

Their biggest hit was the Asia Pacific market, which accounts for roughly 40% of the activity on the Facebook platform. Since the US market has matured, it is the Asia Pacific that accounts for new users as well. However, in the last quarter, only a million new users were added as compared to double-digit users for the past two years.

One of Meta’s largest investments in the past year was the Quest VR headset, on which the company spent $4.2 billion, generating only $877 million. However, they aim to spend even more as the Metaverse, once globally launched, will be increasing their revenue.

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