Facebook’s user growth faltered in the latest quarter, the first stagnation in the social network’s history, part of dire earnings that caused Meta Platforms’ stock to collapse 20% in pre-market trading on Feb 3, wiping about US$200 billion from its market value.
The company also gave a disappointing sales forecast for the current period, and chief executive officer Mark Zuckerberg, who saw his personal wealth potentially plummet about US$24 billion, acknowledged that Meta is facing serious competition for user time and attention, particularly from viral video-sharing app TikTok.
The dour outlook and stalled user momentum is a dramatic turnaround for a company that has posted share gains in every year but one since its 2012 IPO, stoking concern that Meta Platforms flagship product and core advertising moneymaker has plateaued after years of consistent gains.
