Facebook's total user base declined for the first time

Facebook parent company Meta's quarterly earnings report revealed a startling statistics: the company's growth is stagnating around the world for the first time ever. Meta Platforms Inc's shares plunged more than 20% late on Wednesday after the social media company posted a weaker-than-expected forecast.The main concern for Meta is in daily actives, where Facebook actually declined for the first time ever. Facebook did add users in the Asia Pacific and European regions, but overall, it lost a million actives.
 
Facebook’s global daily active users declined from the previous quarter, to 1.929 billion from 1.930 billion. A million people decided that they no longer needed to check in on Facebook every day. Facebook saw a decline, especially over the Christmas period, when people are generally more active online. That’s likely part of the reason why Meta announced its re-focus on younger users last year, and why it’s increasingly putting more emphasis on the metaverse and the next stage of digital connection.
 
Meta also reported lower than expected profit and revenue growth, which it says was driven in part by inflation and Apple’s new ad-tracking privacy restrictions that limit Meta’s ability to sell ads. The company is also facing ongoing scrutiny from government regulators around the world over antitrust concerns and content moderation.
 
Despite the drop in user growth and missed targets, Facebook is still making plenty of money. The social media giant earned $33.67 billion in revenue last quarter, a 20 percent increase from the year before. And when you include Facebook’s entire “family of apps” — such as Instagram and WhatsApp — it’s still growing its users overall (although at a relatively slow rate: from 2.81 billion to 2.82 billion daily active users in the past quarter compared to the quarter before)
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