Focus on Advertising Revenue and Costs Facebook Mother Meta
Meta Platforms, the parent company of Facebook, WhatsApp and Instagram, will release third-quarter figures on Wednesday after the close of stock exchange trading in New York. This will mainly look at the income from advertisements and the costs of the American social media company.
In the second quarter, Meta saw its revenue decline for the first time in its history as advertisers are paying more attention to spending due to economic uncertainty and have become more cautious about advertising.
Advertising revenues are, by far, Meta’s most important source of income. However, CEO Mark Zuckerberg’s company indicated in July that revenues would also be under pressure in the third quarter. Furthermore, Meta saw the costs rise sharply, mainly because more staff was hired. To keep those costs in check, Meta has announced a job freeze.
In addition, investors will look at how much money Meta invests in the metaverse. Zuckerberg’s dream consists of a virtual world where people can do all kinds of business from their homes. This way, they can meet each other in a virtual environment and play games or sports.
Finally, the user numbers are monitored. The growth of Facebook, in particular, has been levelling off for some time, partly due to competition from TikTok and Snapchat. One of the areas in which Meta wants to grow is the so-called Reels, short videos that resemble the music videos that users of TikTok distribute.
Meta had to deal with a worldwide outage on WhatsApp on Tuesday.