Mark Zuckerberg led Facebook slipped- iPhone, TikTok, Telegram, to blame
Mark Zuckerberg led Facebook saw investors flee on Thursday rather than buckle-up for what could be a long ride towards the firm's metaverse vision for the internet's future. While the tech titan has previously seen shares climb despite fines, regulatory threats, misinformation woes and harassment troubles -- this time they plummeted in what one analyst called "a perfect storm."
TikTok to Telegram
Facebook growth that had been on a seemingly perpetual upward trend slipped at the end of last year, with the number of people using the social network daily declining.
Meta executives warned of increased competition, particularly from video star TikTok as well as messaging services such as Telegram and Slack.
The firm is making a priority of investing in its Reels short-form video feature as well as apps such as WhatsApp and Instagram to stay in tune with users.
That means spending big on services that are harder to make money from than the Facebook social network with its digital ad machine.
Apple bite
Meta executives told analysts that Facebook's ad-targeting efficiency is being undermined by a change Apple implemented to the software running iPhones.
In the update of iOS, Apple required application publishers to ask permission before collecting data, much to the regret of companies like Meta that rely on it for ad targeting.
As iPhone users opt out of sharing data for targeting ads in Facebook apps, marketing messages become less precisely targeted and thus less profitable.
"We believe the impact of iOS, overall, as a headwind on our business in 2022 is on the order of $10 billion," Meta chief financial officer David Wehner said on an earnings call.
"So, that is a pretty significant headwind for our business."
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