Meta posts first revenue loss in its history
The Facebook and Instagram parent company reported its first-ever revenue decline Thursday. The slump comes as the economy falters and digital advertising declines. Raj Shah, a managing partner at digital consulting firm Publicis Sapient, said Meta must also confront decreased trust in its leadership and the loss of Sheryl Sandberg, its chief operating officer and architect behind its advertising business. She announced June 1 that she is stepping down this fall.
How big is this decline? Facebook posted a decline of around $260 million, or about 1 percent, for the second quarter of 2022 compared to a year earlier. It also reported a 36 percent decrease in profits over the same time period. This decline will likely continue, according to Shah, until Meta can monetize the metaverse.
Dig deeper: Read Daniel Huizinga’s column in WORLD Opinions about how social media is damaging our culture.
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