Facebook owner Meta Platforms Inc’s shares fell more than 20% late Thursday after Meta Platforms Inc issued a weaker-than-expected forecast, blaming Apple’s privacy changes and increased competition for users from rivals such as TikTok.
For the first time, Facebook’s global daily active users fell from 1.930 billion to 1.929 billion in the previous quarter.
Meta said it was harmed by Apple Inc’s privacy changes to its operating system, which made it more difficult for brands to target and measure their ads on Facebook and Instagram. It also mentioned macroeconomic concerns, such as supply-chain disruptions.
Due to increased competition for users’ time and a shift in engagement toward features like its short video offering Reels, which generate less revenue, the 18-year-old tech giant, which also faces pressure from platforms like TikTok and Google’s YouTube, said it expects revenue growth to slow in the coming quarter.
In the fourth quarter, Facebook recorded 2.91 billion monthly active users, unchanged from the previous quarter.
