The largest social community on the earth isn’t getting any greater.
Meta posted its fourth quarter earnings Wednesday, sharing financials that upset Wall Street sufficient to ship its inventory right into a nostril dive. Shares of the corporate, nonetheless buying and selling below the ticker image FB for now, plunged 20% because the numbers hit.
While Meta’s final quarter noticed some anticipated tendencies play out, together with Apple’s iOS privateness modifications dampening its ad business, it additionally surfaced the novel proven fact that Facebook, Meta’s core app, is now not attracting new customers.
Facebook’s month-to-month lively customers (MAUs) remained flat from the third quarter of 2021 to the fourth at 2.9 billion. Worse, its each day lively customers (DAUs) fell from 1.93 to 1.929 billion in the identical interval — a primary for Facebook, which is thought for a growth-at-all-costs method.
Some of that is intuitive. Facebook is a mature product (to place it gently) and there are solely so many people in markets world wide left for the corporate to enroll. And the corporate is placing extra emphasis than ever on its “family” of apps, together with WhatsApp and Instagram, more energizing merchandise that seemingly nonetheless have a methods to go to succeed in that type of saturation.
The consumer progress slowdown got here in the identical quarter that the corporate previously often called Facebook introduced that it will rebrand as a “metaverse” firm, full with plans to steer its assets towards constructing immersive digital experiences.
The excellent news for Meta is that it nonetheless owns the world’s largest social graph. The dangerous information? Even if a consumer slowdown was anticipated, it’s only one thing more making Facebook — and consequently Facebook’s “Family of Apps,” as Meta calls it — look extra like a relic from the previous fairly than a shining imaginative and prescient of the long run.