Shares of Facebook company Meta have plummeted. Shares of Meta fell more than 20 percent on Wednesday.
According to international news media, the company’s shares fell sharply after the recently renamed Meta reported a drop in revenue and no increase in the number of users.
Similarly, investors have begun selling shares of Facebook due to the huge increase in investment in a project called Metavers and the challenge of advertising in existing services.
Meta had a revenue of рей 10.3 billion in the same quarter last year. Which is 8 percent less than the same period of the previous year. Earnings have declined since Meta began investing heavily in VR and AR technology.
Shares of Meta fell nearly 23 percent on Wednesday as earnings plummeted, CNN reported.
Facebook has been relying on small and medium enterprises for its revenue. But when the supply cycle of such businesses is disrupted, its effect is seen in advertisements. That’s why Facebook is also facing the challenge of advertising.
Meta executives say Apple’s conversion to iOS has added to the challenge of advertising. Meta CFO Dave Wehrner says the disruption of business activity has had a negative effect on advertiser budgets.
Another problem faced by Facebook is the lack of user growth. According to Meta, Facebook’s user base declined in the last quarter of last year. When the number of users does not increase, the advertisement is also seen by fewer people, which has an effect on the stock. Also, competitors like Tiktok have added challenges to Facebook.
