For the first time since going public, Meta reported a decline in revenue. In the second quarter of the year, the company had revenue of $29.07 billion.
It predicts that growth in the third quarter could fall even more.
Meta believes that the weak advertising demand environment they experienced throughout the second quarter is being driven by the macroeconomic uncertainty.
Do you like gadgets? Is that also an app? There are other cool tech things. This newsletter is for you.
Meta's social platforms can't connect their users with third-party ads and content because of Apple's anti- tracking feature for the iPad.
While he can't predict how long the economic downturn will last, he thinks it's worse than it was a year ago.
He has a plan to save the day
In June, he told workers in a weekly employee Q&A session that a hiring freeze was on the way and that a more aggressive performance management would be put in place.
He said there were probably a lot of people at the company who shouldn't be there.
Meta employees will have to face harsher realities. Over the next year, our plan is to gradually reduce growth. The CEO expects us to get more done with less resources.
The engagement of the reels is growing fast. In the last quarter, it made up 20% of the time people spent on the photo sharing site, and this quarter it has increased by 30%.
He thinks that Meta's transition to an artificial intelligence-powered recommendation system will improve things.
The faster Reels grows, the more revenue it brings.
Reels has crossed 1 billion dollars in annual revenue rate from ads, and is growing faster than expected.
There is an ace in Meta's sleeve.
Hundreds of billions of dollars, if not trillions, will be unlocked by the development of the metaverse platforms, he said.
As the metaverse becomes more important in every part of how we live, I am confident that we played an important role in building this.
Meta will launch a web version of its social metaverse platform in the second half of the year.
It is expected that this will increase the number of people who use the service.
I can't help but be skeptical about it.
Meta's focus on Reels seems more like a TikTok ripoff than an attempt to introduce unique engaging features. Users seem to be forced to use it.
According to Mike Proulx, VP principal analyst at Forrester, Meta is trying to monetize Reels in order to compete with TikTok.
Reels will be the new name for video posts under fifteen seconds. A new full-screenUI that mimics TikTok is being tested by the social network. Gen Z won't return to Meta's platforms if a forced engagement strategy is used.
It is not a bed of roses when it comes to pushing towards the metaverse.
A recent study shows that only 16% of people know what the metaverse is.
According to recent Forrester data, over half of the UK population don't want to participate in the metaverse if Meta's running it.
Consumers are skeptical of the metaverse and this makes it difficult for Meta to grow its users to any significant scale in the near term.
While a growing number of metaverse users may eventually reverse the revenue decline, the company's transition from social media to the metaverse seems to have some way to go.
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