Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Meta shares plunge 20% as Facebook growth evaporates

    Meta shares plunge 20% as Facebook growth evaporates

    By Agency Staff3 February 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Facebook owner Meta Platforms’ shares plunged more than 20% late on Wednesday after the social media company 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 1.93 billion.

    Meta said it faced hits from Apple’s privacy changes to its operating system, which have made it harder for brands to target and measure their ads on Facebook and Instagram. It also cited macroeconomic issues like supply-chain disruptions.

    Facebook reported 2.91 billion monthly active users in the fourth quarter, showing no growth

    The 18-year-old tech giant, which also faces pressure from platforms like TikTok and Google’s YouTube, 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.

    Facebook reported 2.91 billion monthly active users in the fourth quarter, showing no growth compared to the previous quarter.

    The after-hours slump in Meta shares vapourised US$200-billion of its market value, while peers Twitter, Snap and Pinterest lost another $15-billion in value. Shares of Alphabet, which posted record quarterly sales that topped expectations on Tuesday, were down nearly 2%.

    Meta, owner of the second largest digital ad platform in the world after Google, had previously warned its advertising business faced “significant uncertainty” in the fourth quarter.

    Apple’s impact

    Meta’s chief financial officer, Dave Wehner, told analysts on a conference call that the impact of Apple’s privacy changes could be “in the order of $10-billion” for 2022.

    Apple’s changes to its operating software give users the choice to prevent apps from tracking their online activity for ads, making it harder for advertisers that rely on data to develop new products and know their market.

    Meta forecast first quarter revenue in the range of $27-billion to $29-billion. Analysts were expecting $30.15=billion, according to IBES data from Refinitiv.

    “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,” said Insider Intelligence analyst Debra Aho Williamson.

    The company’s total revenue, the bulk of which comes from ad sales, rose to $33.67-billion in the fourth quarter from $28.07-billion a year earlier, beating analysts’ estimates of $33.4-billion, according to IBES data from Refinitiv.

    Mark Zuckerberg

    “I’m encouraged by the progress we made this past year in a number of important growth areas like Reels, commerce and virtual reality, and we’ll continue investing in these and other key priorities in 2022 as we work towards building the metaverse,” CEO Mark Zuckerberg said in the earnings release.

    In Meta’s earnings call, he said competition for users was one factor impacting the business, mentioning short video app TikTok by name and emphasising Meta’s commitment to providing services for young adults.

    Net loss from Meta’s Reality Labs, the company’s augmented and virtual reality business, was $10.2-billion for the full year 2021, compared with a $6.6-billion loss the previous year. It was the first time the company had broken out this segment in its results.

    Zuckerberg had previously warned that the company’s investment in this area would reduce 2021 operating profit by $10-billion and would not be profitable “any time in the near future”.

    Reality Labs posted revenue of about $2.3-billion in 2021. The company has not made public the sales numbers for its virtual reality Quest headsets.

    Investors looking at Meta are starting to realise that buying their stock is no longer mostly an investment into their ad platform

    The company said on Wednesday it would this year change its stock ticker to “META”, the latest step in its rebrand to focus on the metaverse, a futuristic idea of virtual environments where users can work, socialise and play. Meta did not comment on the price of a deal with Roundhill Investments, which said in January it would stop using the symbol for its Roundhill Ball Metaverse ETF.

    The tech giant, which changed its name in October to reflect its metaverse aims, is betting the metaverse will be the successor to the mobile Internet.

    “Investors looking at Meta are starting to realise that buying their stock is no longer mostly an investment into their ad platform,” said Flynn Zaiger, CEO of social media agency Online Optimism. “Investing in Meta now looks more like a commitment that you believe that the metaverse will replace much of the Internet consumers experience today.”

    Meta’s rebrand comes at a time of increasing scrutiny from lawmakers and regulators over allegations of anticompetitive conduct and over the impacts of how it handles harmful or misleading content across its Facebook and Instagram platforms.  — Nivedita Balu and Elizabeth Culliford, with Noel Randewich and Sheila Dang, (c) 2022 Reuters



    Facebook Google Mark Zuckerberg Meta Meta Platforms TikTok
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHow an army of consultants feasted on state capture
    Next Article Only one country in Africa has better mobile speeds than SA

    Related Posts

    Qualcomm shows off new chip for AI smart glasses

    11 June 2025

    WeThinkCode secures R35-million Google.org grant to nurture AI talent

    10 June 2025

    Zuckerberg bets big on artificial general intelligence

    10 June 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.