Meta* was the first time in history to experience a fall in income

Meta* was the first time in history to experience a fall in income

Meta*Platforms, which owns Facebook*, Instagram* and WhatsApp, reported a decline in revenue for the first time in their history.

Meta* contributed $28.8 billion over the past quarter — almost 1% less than in the same period last year and less than the Wall Street analysts predicted $28.9 billion. The company's net profit over the reporting period was $6.7 billion, and the third quarter in a row – a decline that the social media giant has not experienced since 2012 – has not gone without good news: Facebook*, Meta's main asset* has increased the user base: three months ago, the number of daily active users on the platform was 1.96 billion, and now it has risen to 1.97 billion.

The financial failures of Meta* appear to be a weak demand for advertising: in just a quarter, its average price dropped by 14%, while a year ago the company reported 47% growth in annual terms. The outgoing chief operating director, Cheryl Sandberg, reported that Meta* was already preparing new solutions in response to increased confidentiality policies on Apple mobile platforms. The company also reported 2022 expenditures ranging from $85 billion to $88 billion, previously reported a range of $87 billion to $92 billion.

In order to increase the involvement of Meta users,* has intensified the work of recommendatory algorithms based on artificial intelligence on its platforms — this is done to counter the growing popularity of TikTok. Already today, the algorithms are being released into Facebook user tapes* and Instagram* every sixth publication, and by the end of 2023 one in three posts would be recommended.

Finally, Reality Labs, which is responsible for the development and production of equipment, including virtual reality devices, showed positive results: its quarterly revenue was $452 million, overcoming the expectations of analysts who predicted $431 million.

* Listed on the list of voluntary associations and religious organizations in respect of which the court has taken a legally enforceable decision to abolish or prohibit activities on the grounds provided for in Federal Act No. 114-FZ of 25 July 2002 on countering extremist activities.