The situation begins to become critical for Meta. After losing users for the first time in its history in the last quarter of 2021, then announcing a decline in quarterly turnover in the second quarter of 2022, the American group suffered another setback between July and September, with profits that fell. fell 52% to $4.4 billion, and revenue fell 4% to $27.7 billion.
Facebook, the essential mobile application to access your account and keep in touch with your friends from your smartphone.
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Downloads:
679 -
Release date :
26/10/2022 -
Author :
Facebook Inc. -
Licence :
Free license -
Categories:
Internet-Communications
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Operating system :
Android, Online service All Internet browsers, Windows 10/11, iOS iPhone / iPad
Penalized by a sluggish advertising market, Meta is plunged into an infernal stock market spiral which should not stop any time soon. After the publication of its quarterly results, the Menlo Park firm saw its action collapse by 19% when Wall Street closed on Wednesday evening, October 26. The company therefore risks suffering another Black Thursday on the New York Stock Exchange, when it has already seen its capitalization melt by more than 500 billion dollars since the beginning of the year. It even fell below the 300 billion dollar mark, a first since 2016.
Beyond its difficulties in the advertising market, Meta is jostled by competition from TikTok, while its colossal investments in the metaverse continue to worry investors a little more each month. For two years, the colossus with feet of clay, via its subsidiary Reality Labs, has squandered 20.9 billion euros to build its virtual world, including 3.7 billion over the past three months. As a result, the company’s cash, which posted $ 12.4 billion in the last quarter of 2021, melted like snow in the sun, with $ 4 billion evaporated each quarter.
For the moment, this bet does not prove to be a winner since the turnover of Reality Labs fell by 49% in the third quarter, to 285 million dollars. In addition, the Horizon Worlds platform, the first draft of its metaverse, has less than 200,000 monthly active users compared to its initial target of 500,000 by the end of the year. In recent weeks, the company has revised this target downwards, to 280,000 users. Meta has two months left to reach it, which already seems compromised.
Despite the turbulence encountered by his group, Mark Zuckerberg does not intend to reduce the sails in the metaverse, which should represent a market of 5000 billion dollars by 2030, according to McKinsey. The boss of Meta has also warned the company’s shareholders of a “significant aggravation” losses in 2023. Before switching to a new year, the Californian group is aiming for a turnover of between 30 and 32.5 billion dollars between October and December, while the markets were counting on 32.2 billion dollars for this period.