made a major rebrand earlier this year. Metafaced a historic decline. in last February Facebookin the number of daily active users for the first time drop He declared that he was alive. This disappointing drop is about approx. 230 billion dollars caused him to lose.
Analysts are hoping to see some progress behind this decline in Meta. However, analysts, who said that they will watch Meta’s first quarter report on Wednesday, also state that a full return is not expected.
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The company’s priority will be to stop the user drop
Market research firm Insider Intelligence principal analyst Debra Williamsonsaid investors will be watching Meta’s first-quarter report, but slow progress in the final quarter. This struggle of Meta was not unexpected. Meta CEO Mark ZuckerbergApple’s new privacy rules this year to the company, $10 billion in lost sales. He warned of possible causes.
Any edits prevent Meta from collecting some user data. This has caused the company to make changes to some of its advertising business models. The changes, on the other hand, make it attach great importance to Reels, especially short video content.
In its last quarter report, the company warned that the impact of these problems could continue in the first quarter of 2022, as the year-over-year growth was achieved. CFO (Manager of Financial Affairs) David Wehner He used the following words in a statement:
We expect continued shifting of engagement from our apps, both from increased competition for people’s time, to video surfaces like Reels, which earn less money than Feed and Stories.
Meta’s move to video content shows that it’s trying to retain younger users. Analyst Debra Williamson said TikTok is a tough competitor and has no sustainable business model for it. And also “Last quarter they said they will figure out how to make better money from Reels. This quarter, we’re looking for signs that it’s actually happening.” added his words.
The number of users is very important to the success of Meta. The historical loss, especially in users on Facebook, was one of the most important results of the fourth quarter report of 2021. Williamson, this is Meta’s priority. decline in use He also said to stop.
So, what do you think about this fall and future of Meta? You can share your views with us in the comments section or on the SDN Forum.