The company is not doing so well. Meta's second quarter financial results are a bit messy after cutting its overhead, scaling back hiring and weathering a new SEC investigation.
What is the most worrying piece of news today? It was the first decline in revenue since Meta went public. The company had revenue of $29.06 billion in the second quarter of 2021.
The COO blamed the decline on the decreasing value of the euro.
The Euro's depreciation relative to the dollar in the second quarter was a significant impact on the company. Revenue would have grown 3% on a constant currency basis.
As of late, these less-than-stellar results aren't an outlier.
It was the first time that Meta had heard of a loss in daily active users. The platform lost monthly active users this quarter, but the platform has begun to slowly increase again. This is not a normal thing. The loss came from Europe where Facebook was banned. There was a 4% increase in daily active people across Meta's family of apps.
Users have spoken out about their dislike for the platform's attempts to mimic TikTok. A petition was shared this week that said, "Stop trying to betiktok I just want to see cute photos of my friends." Yesterday, Adam Mosseri addressed the concerns of the stars in a video, emphasizing that the feed changes are just tests. The news isn't good for those who agree with Kim and the CEO weighed in on the call.
About 15% of the content in a person's Facebook feed and a little more than that of theirInstagram feed is recommended by the company's artificial intelligence. The numbers are expected to more than double by the end of next year. The product has reportedly crossed the $1 billion mark when it comes to revenue run rate.
If we don't like it or not, we're going to see a lot more content from accounts we don't follow. The last week has seen the split of Facebook's main page into two parts: Home and Feeds. It's weird that the founder of Facebook has to specify that our actual friends will remain an important part of social media, but it's understandable.
Building the "metaverse" will be worth the massive investment according to the man.
He said it would be a very expensive undertaking over the next few years. As the metaverse becomes more important in how we live from our social platforms, to entertainment, to work, and education and commerce, I am confident that we played an important role in building this.
In the last quarter, he said that the expenditures were laying the groundwork for a big2030.
Meta Q2 sales decline 1% to $28.82B, EPS drops 32%, moves CFO to new chief strategy officer role
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