Facebook’s reported a loss of daily users for the first time as parent company Meta’s shares plunged more than 22 percent on Wednesday after the social media company posted a weaker-than-expected forecast, knocking almost $200 billion (€177 billion) off the companies valuation.
Meta’s shares fell 22.9 per in after-hours trading and If the drop holds until the market opens Thursday, the company’s overall value or market capitalization is on track to drop by a figure greater than the size of the entire Greek economy, according to world bank data.
The company blamed the weaker forecast on inflation and supply-chain disruptions, which are impacting advertisers’ budgets. The company also said it is facing setbacks as a result of Apple’s privacy changes in its IOS and increased competition for users from rivals like TikTok.
For the first time in the platform’s history, Facebook reported 2.91 billion monthly active users in the fourth quarter, showing no growth compared with the previous quarter.
The social media giant is also investing heavily in its futuristic Metaverse project says it’s building the world’s fastest supercomputer as part of Metaverse plans, but for now, relies on advertising revenue for nearly all its income.
Sheryl Sandberg, Meta’s chief operating officer, said in a conference call with analysts that global supply chain issues, labor shortages, and earlier-than-usual holiday spending by advertisers put pressure on the company’s advertising sales
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