Meta is experiencing one of the worst years in its history. The company owned Facebook, Instagram Y What’s up? announced a massive wave of layoffs this Wednesday that will affect more than 11,000 employees, who make up 13% of the global workforce. The cut of its staff is one of the largest in the world. technology sector. This news, driven by the poor results of its business since January and the 70% drop in stock market value, confirms that prospects of becoming a leader in the digital industry have never been more dire.
The company, led by Mark Zuckerberg, attributed the months-long decline in profits to an “uncertain and volatile macroeconomic landscape.” In part, that’s true. Turbulence and wind in the markets recession hit the tech industry hard. Before this economic winter came, many companies chose to cut their investments. advertisement. And without that, part of the digital industry is going to hell. 98% of Meta’s profits are direct ads.
The bad economic situation goes beyond Facebook. So far this year, Amazon fell 45 percent in the stock market Google 40% and blow up 80%. However, like Asterix and Obelix’s Gallic camp, the two companies resist this blow and emerge as winners in this complex environment: view and TikTok. Moreover, its strong position helps to ‘kill’ Meta.
Apple’s privacy
The current Meta debacle is incomprehensible without Apple. Last year, the manufacturer iPhone introduced new policies privacy this has transformed the digital ecosystem. These policies continued to force apps running on their systems (like Facebook or Instagram) to ask their users if they were allowed to track their online activity. The move infuriated Meta because without such tracking, the ads it sells to advertisers aren’t as effective. And without publicity, Zuckerberg’s empire crumbles like a house of cards. And so it was. Only 16% of OS users iOS They agreed to be tracked, and this weighed on all digital companies that make a living from advertising, especially Meta.
While the vast majority of tech companies are having a dark year, Apple is holding up much better. In the third quarter of the year, its profit exceeded expectations. And although its market value has also fallen, the company has become almost ten times more valuable than Meta. almost nothing.
TikTok threat
Another inevitable reason to understand the commodity crisis is TikTok. Not only has the Chinese video platform stopped growing in its five years of existence, and it has built a dazzling success strategy that has managed to impress all of its competition. Meta sees the rise of TikTok as a threat to its hitherto established dominance in the social media market. And while all companies in the industry are seeing their ad revenue suffer, not just because of its meteoric popularity, it all points to TikTok closing the year by tripling them over. Thus, their revenue from advertisements is expected to exceed $12,000 million. excitement Y blow up combined.
Source: Informacion
