The past year has been a challenge for Mark Zuckerberg and his social media company, Meta. Despite reaching a market value peak of $1.1 trillion in August 2021 due to increased online activity during the COVID-19 pandemic, Meta faced its first-ever decrease in quarterly revenue in July 2022.
This was followed by another decline three months later, causing concern among investors about Zuckerberg’s decision to invest $10 billion annually into the untested world of the metaverse. The company’s market value dropped 60% by November, leading to the layoffs of 11,000 employees, or 13% of the workforce.
Sales Down, Optimism Up
On Feb. 1, Meta reported a 4.5% year-on-year decrease in sales for the last three months of 2022. Although the decrease was smaller than expected, the company expressed optimism for the current quarter, projecting revenues to reach $28.5 billion, higher than the first three months of 2021 before Apple’s privacy rules for iDevices made it more difficult for advertisers to track online customers.
Zuckerberg indicated that expenses were being managed carefully and that the company would be more proactive in cutting non-profitable or less critical projects. The company also announced plans to buy back an additional $40 billion worth of Meta shares.
In a further bit of good news for Meta, a judge in California dismissed a lawsuit filed by the Federal Trade Commission opposing Meta’s acquisition of នៅក្នុង, a leading virtual reality fitness app producer.
Source: https://beincrypto.com/meta-will-call-it-comeback-story/