Meta (fka Facebook) now holds the record for the largest single-day loss ever by a US company
It said goodbye to $230 billion in value.
There are three big reasons why:
- For the first time, Facebook’s daily active users went down by 1 million in North America – which is bad news because Facebook’s revenue per user is highest in North America. Basically, the kids don’t think it’s cool anymore and TikTok is taking people away.
- Apple’s changes to allow users to prevent apps from tracking them is expected to cost Facebook $10 billion in revenue. If they don’t know where you are, what shops you’re visiting and who you’re spending time with, then their ads can’t be as targeted.
- It’s also pouring money into the metaverse – spending $10 billion on it last year. But the metaverse is still just a VR concept that isn’t yet fully baked or ready for mass adoption.