Facebook loses daily users for the first time

Facebook loses daily users for the first time
According to Reuters, Facebook owner Meta Platforms Inc’s shares plunged more than 20 percent late on February 2 after the social media giant posted a weaker-than-expected forecast, blaming Apple’s privacy changes and increased competition for users from rivals like TikTok.

Facebook’s global daily active users declined from the previous quarter for the first time, to 1.929 billion from 1.930 billion, news agencies reported.

According to Reuters, Facebook owner Meta Platforms Inc’s shares plunged more than 20 percent late on February 2 after the social media giant posted a weaker-than-expected forecast, blaming Apple’s privacy changes and increased competition for users from rivals like TikTok.

Meta said it faced hits from Apple Inc’s privacy changes to its operating system, which have made it harder for brands to target and measure their ads on Facebook and Instagram.

Reuters reported that Facebook also faces pressure from social media platforms like TikTok and YouTube. Facebook said it expected slowing revenue growth in the coming quarter due to increased competition for users’ time and a shift of engagement toward such features as its short video offering Reels, which generate less revenue.

“It’s clear that there are many big roadblocks ahead as Meta faces tough new competition for ad revenue such as TikTok, and as it contends with ongoing ad targeting and measurement challenges from Apple’s iOS changes,” Reuters quotes Insider Intelligence analyst Debra Aho Williamson as saying.