Meta Platforms which owns Facebook & various other platforms, saw its stock value drop by a staggering $230 billion on Thursday. According to experts, this is one of the biggest recorded daily losses for Meta, as its stock price dropped by 26.4%!
But what drove such a massive drop in Meta's stock price? At the heart of the problem was its quarterly figures, which disappointed the investors. Meta revealed that the daily active users of Facebook actually dropped for the first time ever since its inception.
And since Meta's CEO Mark Zuckerberg controls a lot of the company's shares, his net worth also dropped by $31 billion. In fact, this drop in the net worth of Mark Zuckerberg was equivalent to the GDP of Estonia (country)!
This drop in the daily active users of Facebook pushed Meta's stock down. In turn, this reduced his net worth of Zuckerberg as he is now only worth $90 billion.
The report revealed that the daily active users of Facebook were 1.92 billion during the three months period. During the previous quarter, the number was 1.93 billion, which means that the figures have dropped.
This is an indication that Facebook, which is still one of the biggest social networks, is starting to lose its users. And since most of Meta's revenue is driven by ads shown on Facebook, this will also hurt the company's profitability!
Some of the reasons behind the drop in daily active users include competition from other networks such as YouTube, TikTok, and Snapchat. According to Zuckerberg, the younger users are more attracted to different social media platforms, which has hurt the company's reputation.
In other news, Snap which is a competitor of Facebook, saw its share price increase by 60% after reporting a first-ever profitable quarter! And if we look at the ambitions of Meta, it is now more interested in the development of its supposed Metaverse, which will be the future of the internet and social media!