Retail in Asia


Meta records its first-ever revenue drop

Meta is anticipated to see its first sales decline in history as a public business, down 0.4 percent to around USD 29 billion.

SEE ALSO : Meta unveils plans for the metaverse in Hong Kong

Meta’s investors are allegedly concentrating on two additional short-term bets at the time of release of the company’s financial results. They are working to improve the short-video ‘Reels’ serviceto compete with TikTok. In addition, the company is overhauling its advertising system in light of Apple’s throttling of access to user data. Despite these innovations to remain competitive, the success of the company’s future may be dependent on the metaverse.

CEO Mark Zuckerberg told staff members that he thinks this investment will take time, but that the business has to speed up the process. The conversation also discussed topics that will be available to the public when Meta releases its quarterly results.

Zuckerberg also pacified investors’ concerns by claiming that stagnant user growth and a third straight quarter of profit decreases is to be expected. The company says they are preparing for indications of hardware project cancellations and slower hiring to control costs.

This year, Meta made significant updates to Facebook and Instagram, mimicking the style of rival TikTok and its algorithmic suggestions of trending short videos.

After Apple’s privacy restrictions from last year negatively impacted Meta’s ad targeting capabilities, Meta is likewise making significant investments to rebuild its ad system upon its own user data.

Zuckerberg told employees Reels represented a “huge opportunity” for Meta, but also noted that the format was “still only around 15 percent of the size of TikTok.”

Announcing plans to hasten the transitions so that income from the core business could finance Meta’s long-term metaverse bets, Zuckerberg viewed that the economy had become worse since management first planned the changes to Reels and advertisements.

SEE ALSO : Facebook parent Meta COO steps down from her role

“Our job is basically to bring in as much of the business that might be three years out into two years out, or one and a half years out, while also pushing on things like expenses and cost growth,” said Zuckerberg.