The decline was also seen in the number of monthly active users of Facebook, the Menlo Park conglomerate’s flagship social network. MAUs went from 2,936 million in the first quarter to 2,934 million in the second quarter, but registered an increase of 1% year-on-year.
There is no firm that will not bow to current macroeconomic pressures this earnings season in one way or another. Meta (Facebook) pointed to this as being responsible for its first year-on-year revenue decline and offered a gloomy outlook for the coming months according to Dave Lee in the Financial Times.
What are the causes
Despite the optimism of Mark Zuckerberg in the metaverse and the other projects he has in mind, Meta faces a complex panorama. It should be noted that almost all of Meta’s income come from your advertising platforma very important part of its business that seems to be affected by several factors, among them, the new privacy rules of the App Store, which limit the tracking of users by applications, among which are Facebook and Instagram .
Likewise, the firm led by Mark Zuckerberg is in the midst of important internal and external changes. While he reconfigures part of his work team and tries to face TikTok through Facebook and Instagram.
“This outlook reflects the continuation of the weak advertising demand environment we experienced during the second quarter, which we believe is being driven by broader macroeconomic uncertainty,” said the CFO David Wehner.
Earlier this year, Zuckerberg tried to assure investors that costs of entering new lines of business would be kept under controlbut warned about the continuing “weakness” in its income in the remainder of what remains a volatile year.
Source: Ambito
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