Meta have had their profits negatively impacted by ad sales dip.
The parent company of Facebook, Instagram, and WhatsApp have seen a fall in revenue, profits and their share price in their third financial quarter of 2022 after they set their sights on being the market leader in virtual reality, face increased competition from apps like TikTok and an increase of security measures from Apple’s recent software update's privacy features.
Sales - which went down by four per cent - were recorded to be at 27.7 billion with profits being halved.
The tech giant’s founder Mark Zuckerberg recognised they need to tackle their “near-term challenges” and hinted at job cuts by remarking the firm might be a “smaller organisation” in the coming year.
The 38-year-old billionaire said: "There are a lot of things going on right now in the business and in the world. We're going to resolve each of these things... I think those who are patient and invest with us will end up being rewarded."
In February, investors were shaken when Meta announced they had experienced their first drop in daily users. They saw their first shrinking of revenue in July as companies - worried about the future of the world economy - slashed their ad budgets.
Shares are going for nearly 60 per cent less than they were at the beginning of the calendar year, meaning Meta’s net worth has seen a huge plunge of billions of dollars.
Takings for their Reality Labs unit - the basis for its virtual reality enterprise - reportedly halved from this time last year, taking their total loss for 2022 to $9.4 billion.
Meta said: “We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.”
