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Meta has to deal with the first drop in sales since the IPO

There has probably been a trend reversal for Meta. Because the American group had to announce a decline in sales for the second quarter of 2022 for the first time since its IPO in 2012.

It almost resembles it Netflix’s Q1 numbers. Because the Meta also has to deal with the drop for the first time.

This is not found in subscribers, but in business numbers. Because the group has reported a decline in sales for the first time since its 2012 IPO.

What does Meta’s quarterly report look like?

Compared to the previous year, meta sales fell by about one percent to 28.8 billion US dollars.

And the profit at the end of the second quarter is also negative. Profits fell nearly 36 percent to about $6.7 billion.

For the current quarter, the parent company of Facebook, Instagram and WhatsApp expects total revenue between 26 and 28.5 billion US dollars.

What reasons does Meta see for the weak numbers?

A big problem in the past quarter is the weak demand for advertising. Quarterly figures would show a continuation of this trend.

The reason is primarily general economic uncertainty. And the strong dollar and resulting exchange rate effects also had a negative impact on earnings.

According to the company’s forecast, the numbers for the third quarter of 2022 could be affected by a whopping six percent compared to the previous year.

For the current financial year, Meta has now revised its forecast of total expenditure. Initially, expenditures of 87-92 billion US dollars were planned, now it should be only 85-88 billion US dollars.

After all, the number of users is increasing

But not everything about the announcement of quarterly numbers made a bad impression. The meta could at least shine with more users.

The Facebook subsidiary, for example, increased its daily active users by three percent to 1.97 billion compared to the previous year. Monthly active users increased one percent to 2.93 billion.

The group’s entire family of apps with Facebook, Instagram, WhatsApp and Messenger could grow even more. In any case, there was an increase of four percent.

Group Family has 2.88 billion daily and 3.65 billion monthly active users.

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