Facebook Averages 2B Daily Users for First Time

Facts

• Facebook usage increased to 2B users per day in Dec. 2022, a larger-than-expected amount of growth. But rising costs and a dip in advertising that’s recently hampered parent company Meta still led it to report revenue of just $32.2B — down 4% year-over-year in three months up to December.
• This is the first time Facebook, which added 16M users last quarter, has averaged 2B users per day. Previously, Meta-owned WhatsApp reached the 2B per day mark.
• Meta has been battling a decline in ad revenue because of a weak economy, inflation, the ongoing Russia-Ukraine war, and a change in iPhone security rules. However, the company’s revenue of $32.2B in the fourth quarter exceeded Wall Street’s estimate of $31.6B.
• Meta also recently announced a $40B stock buyback. The company's fourth-quarter performance helped stocks to surge.
• Last year, Meta underwent a major restructuring, including cutting 11k jobs (13% of its staff) and reducing office space. Mark Zuckerberg, Meta’s CEO, called 2022 a “challenging year” but he also lauded the company’s “good progress.”

Sources: Bbc news, Engadget, Ad age, CNBC and Bbc news.

Narratives

• Narrative A, as provided by NPR Online News. Meta is facing various challenges to its bottom line with confidence, and as Zuckerberg continues to make the company stronger and more nimble, things will continue to improve. Investment in the company’s futuristic virtual reality world, the Metaverse, could pay off and lead to enormous growth in the near future.
• Narrative B, as provided by Vox. Zuckerberg’s efforts to make Meta more efficient have led to a major dip in employee morale. The company’s precarious financial situation also has employees, who were willing to ignore their moral qualms about some of Meta's products, questioning whether it’s worth sticking around. Expect a bumpy road ahead for Zuckerberg’s empire.