Wall Street sours on Facebook: ‘I’m not sure there’s a core business that works anymore’
New York PostDec 23, 2022
The 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.
The Spin
Narrative A
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
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.