Facebook loses users for the first in its 18 years of history as the stats get startling low and the company faces fierce competition from TikTok and the likes.
Facebook loses users on a daily basis falling by about 50,000 users in the last quarter of 2021. There has been a loss of about 1.93 billion logs per day. According to the recent data, the greatest loss was observed in Latin America and Africa suggesting the saturation of the company on the global front.
As Facebook loses users, Meta’s stock price was bound to go downwards and as expected it decreased about 20 percent in the aftermath of the news of the loss of new users.
The share price drops down by $249 resulting in a humongous loss of about $200 billion as per the market value.
The transition of Facebook to “metaverse” has seen all kinds of challenges attacking the company at once such as the competition, scrutiny from both international and federal regulatory bodies, and the restrictions and questions looming over the business practice of the company.
If this downward path continues, the company might face further destruction in terms of losing its rank in the list of valuable businesses across the world.
The company has been flourishing in different dimensions to strengthen its assets and investments. Facebook has been diligently investing to become a hardware giant. It has also hired more than 10,000 new staff to rebrand the company into Meta but the transition is still in its initial stage and the company will start yearning for fruits once it’s activated in full throttle.
“Last year was about putting a stake in the ground for where we are heading; this year is going to be about executing,” CEO Mark Zuckerberg said on the company’s earnings call.
The user growth of Facebook had been stagnant for a while in the United States of America and Europe for quite some years now but the company had been making up consistently from the other regions of the world. but as the new numbers start to take a dip across the globe, this is an entirely new consequence that the company has to face in days to come.
This was predicted by the tech pundits that the global saturation was evident. This is the mere reason why Facebook started pushing itself in different avenues such as hardware and other tech-related fields to keep its market presence intact.