SAN FRANCISCO Facebook Plummets company Meta delivered a grim mix of a stronger-than-expected decline in profits, a drop in users, and threats to its advertising business on Wednesday, sending shares down about 22% in after-hours trading.

• Facebook’s parent company Meta delivers a gloomy mix of sharper-than-expected earnings declines.
• Facebook reports that it lost about one million daily users worldwide between the last two quarters.
• Analysts expected 1.95 billion daily active users on Facebook, but Meta reported 1.93 billion.

Metaverse Cost Facebook Plummets:

Already nervous markets have punished darlings from the pandemic era, including Netflix for disappointing results, where Meta got a taste of it after a quarterly profit of $ 10.3 billion, and daily user growth did not live up to expectations.

However, the signature Facebook platform also reported that it lost around one million daily users globally between the last two quarters. A small number on an app with nearly two billion daily users but a potentially worrying sign of stagnation.

CFO Dave Weiner told analysts that user growth has been hit by “headwinds”, including disproportionate growth in the Asia-Pacific during the declining pandemic and a rise in mobile data prices in India.

“In addition to these factors, we believe that competitive services have a negative impact on growth, especially among younger audiences,” Weiner added.

The company’s management has repeatedly pointed to competition from TikTok. But also from other networks, while facing numerous investigations and lawsuits for abuse of a dominant position.

Analysts expected 1.95 billion daily active users on Facebook Plummets, but Meta reported 1.93 billion. A key indicator of the growth path of a company driven by the people who choose to interact with its platforms.

Financial Side Meta:

On the financial side, Meta reported $ 33.67 billion in revenue, in line with its guidance. But reported fourth-quarter net income of $ 10.3 billion, a decline of eight percent year-on-year.

As an explanation for the disappointing performance. Meta cited competition and supply chain issues that its customers, the advertisers, have suffered. Meta’s share price has fallen about 22% to around $ 250 at 0010 GMT in after-hours trading.

At the same time, the company announced that ad targeting rules introduced by Apple last year had a negative impact on its fourth-quarter financial results.

When Apple updated iOS, its mobile operating system. Apple required application publishers to ask permission before collecting data, much to the chagrin of companies like Meta. Which rely on this information for ad targeting.

“Meta can only see single-digit revenue growth. This is ahead of further legal and regulatory developments and actions,” said Scott Kessler, an analyst at Third Bridge. It seems that many are reassessing in real time, he added. 2.8 billion people used one of the four platforms and messenger services at least once a day and 3.6 billion at least once a month.

First Published Results Company Changed:

These are the first published results since the company changed its name. At the end marking both a step towards its Metaverse vision and a departure from its scandalous social media empire. The Silicon Valley giant’s whistleblower crisis last year revealed claims that executives prioritize growth over the safety of their billions of users.

Abrasive news reports based on internal documents leaked by former employee Frances Haugen have revived long-standing regulatory efforts. But U.S. lawmakers have not made much progress since. An activist group called The Real Facebook Plummets Oversight Board used the results to warn of what could be next. Facebook now appears to be feeling the impact of Apple’s new privacy-centric approach to advertising revenue,” the group’s statement said. This will undoubtedly make them even more desperate to secure advertising revenue in all necessary ways.