Facebook reported a decline in daily active users for the first time and a lower-than-expected forecast for the current quarter.
The company recorded 1.929 billion daily active users in the fourth quarter, down from 1.930 billion daily active users in the third quarter. This and many more were the highlights of Facebook’s quarterly report, in which its shares fell 20%.
Facebook posted a jump in revenue to $33.67 billion in the fourth quarter from $28.07 billion a year earlier, better than analyst estimates of $33.40 billion.
Meta’s revenue forecast for the first quarter is between $27 billion and $29 billion, shockingly below analysts’ estimate of $30.15 billion.
Apple cited changes in Apple’s privacy practices as the reason for the decline, making it harder for brands to target ads on their platforms, increasing competition for users from rivals such as TikTok and disrupting the supply chain.
“It’s clear that there are many big roadblocks ahead as Meta faces tough new competition for ad revenue such as TikTok, and as it contends with ongoing ad targeting and measurement challenges from Apple’s iOS changes,” said Debra Aho Williamson, an analyst at Insider Intelligence.
For more information, read the original story in Reuters.