Facebook’s user growth stumbled in the recent quarter, part of the dire earnings report that caused Meta Platforms Inc shares to plunge 20%, according to a report by Bloomberg on Thursday.
- The company also provided a disappointing sales outlook for the current period, and the CEO Mark Zuckerberg disclosed that Meta was facing serious competition for user time and attention, more so from TikTok.
- The dim outlook and stalled user steam is a significant turnaround for a company that has reported share gains every year, increasing fears that Meta Platforms’ core product and core advertising unit has flattened after years of consistent growth.
- Zuckerberg stated Meta’s rival to TikTok, Reels, is expanding quickly, but monetization has been slow and requiring investors’ patience as the product continues to grow.
The misses emerge at a critical time for the company, which is confronting regulatory battles on numerous fronts and also trying an expensive change in corporate strategy to bet on the metaverse. FB down 19.75%, Pre-market trading