Founded in 2004, Facebook has a history of almost 18 years in the ecosystem of , of which most of the time it has positioned itself as one of the most important platforms in the sector. However, in recent years the growth of the company has not been the same as in the past. And now the time has come when that growth has stopped, as seen in the latest presentation of the results of its parent company, Meta.
Mark Zuckerberg faces the first drop in users in the history of his social network
According to the estimated daily active users or DAU Facebook, the main social network in Meta, suffered a fall; going from 1,930 million users in the third quarter of 2021 to 1,929 million for the last quarter of 2021. This drop of one million DAUs, although not considerable, reflects a harsh truth for the famous social network that, in addition, occurred during the /Christmas season, when we use digital platforms intensively: Facebook is no longer growing.
At least not like before.
The truth is if we compare its results with those of last year, Facebook continues to grow, although very slightly: 5% more daily active users than Q4 2020 and 4% more monthly users than Q4 2020.
If we look precisely at this parameter, that of monthly active users or MAUs, we see how its growth rate has been falling year after year, typical of a mature company. The graph shows the data for the third quarter of the last ten years.
The ecosystem of social networks, although it is still considered a monopoly for Meta with Facebook, Instagram and WhatsApp, has seen the emergence of new players. These, led by , they have meant a disruptive change for the rest of social networks, becoming the new favorite applications, especially for younger audiences. In this way, one of the factors that has affected its growth has been precisely the appearance of these new social interaction platforms.
He has always claimed that TikTok represents competition for Facebook, a very relevant one if we take into account the continuous growth it has shown in recent years. For this reason, one of the company’s focuses has been to recreate the success of the application of Bytedance in their own products, giving more presence to the video, especially on Instagram. But, so far their efforts have not made much of a difference, so they continue to experience a migration of users, leading both Instagram and Whatsapp to follow similar paths to Facebook and have stagnated their growth.
Thus, although Meta has not provided disaggregated results for these two networks, the total number of DAUs for the group’s networks is 2,820 million users, compared to 2,810 million in the previous quarter. In year-on-year terms, the number of DAUs in all of Meta has grown by 8%.
Meta barely reached the revenue forecasts for this last quarter and suffers a 25% drop in the stock market
As a result of the loss of users that we have commented on, the technological giant also presented a drop in its stock market. In this way, after the presentation of results, Meta shares fell by an estimated 200 billion dollars, around 177 billion euros. This supposes a fall of 20%, carried out during the operations after the closing of the stock market of New York; this even affected other social platforms like Twitter either pinterestwho also suffered a fall.
Finally, at the close of markets on Thursday, Meta shares had lost $230 billion in valuation (-25%) compared to its price before the presentation of results, the biggest drop in history in a single day for a North American company.
On the other hand, the results presented by the company in terms of income, although they did not show a drop, slightly exceeded market predictions. In this way, revenue for the quarter for the group was 33,670 million dollars, 29,850 million euros, 19.9% more than the previous year.
This attests to the impact received by the company from the changes presented in the digital landscape in terms of advertising.
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