Meta reports a revenue drop at the end of Q2

Meta is one of the giant information technology companies that kept on excelling for many years and proved itself when there was no other renowned social media platform to connect people. Starting with Facebook and bringing in WhatsApp and Instagram among other products and services makes it more loved by people all around the world. After the Covid-19 pandemic there came a downfall in the economy which affected the functioning of the companies. Meta reports a revenue drop at the end of Q2.

Revenue dropped at the end of Q2

In the April-June quarter, Meta had expected $2.56 per share but in actuality, it couldn’t come up to the expectations and earned $2.46 per share. After the end of the second quarter, Meta reported revenue of $28.8 billion.

Like all the other companies, Meta also faced many challenges in the last few years. Few told by Meta are as follows:

• Due to the economic deterioration, the giant faced a slowdown.
• As the advertisers pulled back the advertising as they were fearing a worldwide recession and hence Meta faced a big slash back than expectations.
• The dollar gained strength and affected overseas revenues.
• Competitors like Apple allowed its users to opt-out of tracking which affected the effectiveness of ads and the marketers started asking Facebook for it.
• Meta is investing these days in Metaverse vision so slowing down the advertising expenses. The metaverse vision requires more expenses which is a big challenge in today’s time.

Meta CEO Mark Zuckerberg told the analysts:

“We seem to have entered an economic downturn that will have a broad impact on the digital advertising business,” Meta CEO Mark Zuckerberg said in a call with analysts. “It’s always hard to predict how deep or how long these cycles will be, but I’d say that the situation seems worse than it did a quarter ago.”

To address the challenges the company is planning to increase the price of its products like Quest 2 headsets and many other subscriptions. The competition is also increasing day by day and the platforms are coming up with new technologies that put more pressure on Facebook that make money by selling ads.  Let’s see how the future will shape up for the company and whether will it be able to achieve the expectations of Q3.

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