Facebook’s nonstop revenue run for the past decade has finally come to a stop, with the social networking site reporting its first-ever decline in revenue for the second quarter, announcing a one percent drop to $28.8 billion.
It has been predicted that its growth could fall further in the third quarter.
Meanwhile, the for its parent company, Meta, the overall profit fell 36 percent to $6.7 billion. Further, the Reality Labs, responsible for building Mark Zuckerberg’s metaverse, lost $2.8 billion in the quarter.
One of the reasons for this is being said to Apple’s “Ask app not to track” prompt on iPhones, which has made Meta lose almost $10 billion in ad revenue last year alone, The Verge reported.
However, the silver lining for Meta is that it was able to reverse the decline in Faceboook’s daily users seen two quarters ago. Facebook’s daily user grew by three percent to 1.97 billion.
Zuckerberg said that Reels, the company’s short-form video format in contrast to TikTok, is monetising faster than Stories did after Snapchat’s format was copied years ago. The company further hopes that Reels will be a revenue driver, though not much money is being made from them.
(With inputs from The Verge.)