Over the years, Facebook’s growth has slowed. Worse, it started to stagnate. Despite this, the social network had never suffered a drop in user numbers before. But that era seems to be over. Meta just released an alarming new report that could slow the group in their Metaverse ambitions…
The beginning of a decline for Facebook
This is the first time in 18 years that Facebook has been credited with a decline in its user base. In a report unveiling Meta’s quarterly results, the social network lost around 1 million active users in the fourth quarter of 2021. Figures show that Facebook had 1.930 billion daily users on its platform in the third quarter. In the fourth quarter of the same year, it was only 1.929 billion.
A million is not much for the Meta Group. However, this number gives an idea of the situation Facebook is currently in. At the beginning of 2021, the social network was still registering user growth of between 20% and 30% per quarter.
This decline is all the more worrying. According to the report, users in regions of the “rest of the world” (Latin America, Africa, etc.) have decided to avoid Facebook.
Numbers that scare investors
In its latest report, Meta is pleased with sales in line with its forecasts. However, for its part, the group’s net profits are down 8% year-on-year. Those disappointing results would have made investors cautious. After the results were released, Meta’s impact decreased by 23% during after-hours electronic trading on Wall Street.
Where can this drop in user numbers come from? Would the platform be less attractive than before? At least that’s what young people seem to think. For 10 years, Facebook has admitted to having a problem with this goal, which nonetheless loves social networks. However, young people seem to prefer spending time on Instagram (which belongs to the meta group), Snapchat or even TikTok to going on Facebook.
The hard hits are connected for Mark Zuckerberg and his group Meta. With numbers falling and the failure of Diem, the digital currency project launched in 2019, the multinational must find new arguments to attract investors. If you’re interested in the meta, discover the ins and outs of the war the group is waging against Apple.