Facebook parent company Meta has reported that profits have been affected due to the low number of users. One reason for this is the effect on advertisements as well.
Washington: Facebook is facing a loss due to less users. Facebook's parent company Meta has announced that its profits have been affected due to the decrease in the number of users. This will also have a direct impact on the advertisements received by the company. Let us tell you that in a few hours of trading, the prices of the company's shares have fallen by 22 percent.
The company also told the OTT platform responsible
The company says that OTT platforms like Netflix are also responsible for this disappointing results. Meta had a profit of $10.3 billion in the last quarter of last year. Despite this, the number of daily users did not increase as expected. This is the first result since the company changed its name to Metaverse at the end of October.
The reason for the increase in the prices of data in India
The Facebook app lost nearly 1 million daily users during the last 2 quarters of 2021. However, the app still has 2 billion daily users. The company's Chief Financial Officer (CFO) David Weiner said that users around the world have decreased due to adverse circumstances. These include the corona epidemic in the Asia-Pacific region and the increase in mobile data prices in India. Due to these reasons, there has been a negative impact on the growth of Competition Services. Due to this, especially the youth users have decreased.
8 percent less profit compared to 2020
However, the company has faced multiple investigations and complaints of misuse. At the same time, its officials have repeatedly pointed to competition from other networks with Tiktok. Analysts were expecting 1.95 billion active daily users on Facebook, but Meta only reported 1.93 billion. Meta had a net profit of $10.3 billion in the fourth quarter of last year, down 8 percent from the year 2020, but the company earned $33.67 billion in business in line with its forecast.
The company's share price increased to $ 250
Meta blamed competition and supply chain disruptions for the disappointing performance, saying it has had an impact on customers and advertisers. At the same time, during the after-hours trading, the shares of Meta have fallen 22 percent to $ 250. The company said that the advertising rules imposed by Apple last year also affected its financial results in the fourth quarter.
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