Meta, Facebook’s parent company, recently recorded its first-ever quarterly revenue fall, amid growing competition and nervousness from advertisers. CEO Mark Zuckerberg says that they seem to have entered an economic downturn that would adversely affect the digital advertising business. And the present situation seems even worse than it did a quarter ago, he told the investors during a conference call.
Meta said that it is expecting third-quarter revenue to fall to $26 billion and $28.5 billion making it a second year-over-year drop in a row. However, as per IBES data from Refintiv, analysts were expecting it to be $30.53 billion.
Zuckerberg believes that this downfall period demands more intensity, and he also expects the company to get the most out of the resources available.
The total revenue that comprises ad sales mostly, fell 1% to $28.8 from $ 29.1 billion in the second quarter ended June 30. This figure slightly missed Wall Street’s estimate of $28.9 billion, as per Refinitiv.
Meta executives said that the Reels option provided in its platform to compete with TikTok was generating over $1 billion revenue annually.
However, two extremely renowned personalities, Kim Kardashian and Kylie Jenner shared a meme asking Instagram to stop copying TikTok. They want the company to switch back to the old Instagram feed.
Instagram head Adam Mosseri addressed the criticism and agreed that a few changes made in the app are “not yet good.” He also believes that more and more of Instagram will become video over time.
As some of the renowned personalities have commented on Instagram copying TikTok, it could become a major issue in the future. So, Meta should closely pay attention to these critics and do something to stop it.
What are your thoughts on this matter? Will it be problematic in the future or will it be beneficial?
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