Facebook founder Mark Zuckerberg has put his company’s future at stake in an immersive online world known as Metavers. On Wednesday, the company indicated it was still navigating that change.
Meta, a company formerly known as Facebook, posted a પ્રથમ 7.5 billion profit in the first quarter, down 21 percent from a year earlier. Revenue rose 7 percent to 27.9 billion. Wall Street analysts forecast a profit of $ 7.1 billion on revenue of $ 28.2 billion.
The results followed Meta’s disappointing financial report in February, when the company also saw lower profits and slower user growth. The next day, shares of Meta fell 26 percent and its market value plunged more than $ 230 billion in the company’s biggest one-day wipe ever.
The company’s first back-to-back decline in a decade in two quarters is a sign of the difficulties it is facing as it changes course. While Meta Virtual-Reality spends heavily on metavers-related products like goggles, it is not certain whether people will want to purchase such gadgets. At the same time, the company’s core social networking apps – including Instagram, WhatsApp and Messenger – face challenges. Growth of new-users has slowed and competition from competitors such as the Chinese-owned video site TikTok is increasing.
In a statement on Wednesday, Shri. Zuckerberg said they are sticking to the Metavers plan. “We believe in long-term opportunities and growth that will unlock our product roadmap,” he said.
Meta’s digital advertising core business has been hurt by Apple’s decision to allow iPhone users to monitor their online activities by restricting applications. That change has affected Meta’s ability to target ads to people on iPhones. Google has also discussed introducing similar privacy changes to its mobile products, which could further affect Meta’s advertising business.
In March, Russia banned Facebook and Instagram after invading Ukraine, hurting millions of users, analysts said. Facebook announced that it would begin labeling Russian state-backed media and easing hate speech policies for Ukrainian users.
“Meta Category 5 is facing Hurricane Headwinds, from engagement to advertising growth,” said Daniel Ives, an analyst at Wedbush Securities. “One means the company still doesn’t have its hands full with all the changes or losing users with the iPhone.”
On Wednesday, Meta reported that the number of users in the family of its apps has increased by 6% compared to a year ago and is slightly higher than in the previous quarter. On Facebook, the number rose to 1.96 billion per day from 1.93 billion in the first quarter.
In February, Meta revealed that the core Facebook app lost nearly half a million users in the fourth quarter compared to the previous quarter. This was the first such decline in the company’s history.
Shares of Meta, which ended regular trading at $ 174.95, rose more than 17 percent after hours of trading.