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Meta's Profit Slides by More Than 50 Percent as Challenges Mount (nytimes.com) 84

The social networking company, which is trying to shift into the so-called metaverse, posted falling sales and said it was "making significant changes" to operate more efficiently. The New York Times reports: This year, Meta's earnings have been hit hard by its spending on the metaverse and its slowing growth in social networking and digital advertising. In July, the Silicon Valley company posted its first sales decline as a public company. Its stock has plunged more than 60 percent this year. On Wednesday, Meta continued that trajectory and indicated that the decline would not end anytime soon. It said it would be "making significant changes across the board to operate more efficiently," including by shrinking some teams and by hiring only in its areas of highest priority.

The company reported a 4 percent drop in revenue for its third quarter -- to $27.7 billion, down from $29 billion a year earlier. Net income was $4.4 billion, down 52 percent from a year earlier. Spending soared by 19 percent from a year earlier. The company's metaverse investments remained troubled. Meta said its Reality Labs division, which is responsible for the virtual reality and augmented reality efforts that are central to the metaverse, had lost $3.7 billion compared with $2.6 billion a year earlier. It said operating losses for the division would grow "significantly" next year. For the current quarter, Meta forecast revenue of between $30 billion and $32.5 billion, which would be down from a year ago. The company's shares fell more than 11 percent in after-hours trading.
In a statement, Mr. Zuckerberg, Meta's founder and chief executive, acknowledged "near-term challenges on revenue." But he added that "the fundamentals are there for a return to stronger revenue growth" and that he was "approaching 2023 with a focus on prioritization and efficiency."
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Meta's Profit Slides by More Than 50 Percent as Challenges Mount

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  • by 93 Escort Wagon ( 326346 ) on Wednesday October 26, 2022 @08:39PM (#63001631)

    Is there a GoFundMe we can sign up for to help this poor company out?

  • Maybe Musk can force Apple to pay him 30% of ad revenue when they connect through Starlink.

  • poor meta (Score:3, Insightful)

    by muntjac ( 805565 ) on Wednesday October 26, 2022 @08:59PM (#63001673)
    enjoying some popcorn watching this company fail. hope they don't come back.
  • schadendorphins (Score:4, Insightful)

    by Anonymouse Cowtard ( 6211666 ) on Wednesday October 26, 2022 @09:03PM (#63001685) Homepage

    Can't figure out which has released more schadendorphins. The Bitcoin fund losing over a billion or ... nah it's this. The scale is bigger. The victims more concentrated and deserving..

  • by Chas ( 5144 ) on Wednesday October 26, 2022 @09:04PM (#63001687) Homepage Journal

    Uh. Why is nobody buying in?

    • Butbutbutbutbut... we TOLD you that you want this! What went wrong here?

      I know it, we have to hire some influenzas to tell you!

  • Facebook will last (Score:4, Insightful)

    by hdyoung ( 5182939 ) on Wednesday October 26, 2022 @09:41PM (#63001735)
    For decades, but the explosive growth phase is clearly over, there are now other big players with their fingers in the online ad business. Their stock valuation was based on the idea that a hundred billion people would be facebook users be 2025, and Zuckerberg would be the ONLY guy showing them ads and selling their user data, so that’s gonna have to come down by a cool order of magnitude.

    But Zuckerberg is firmly, permanently in control, and he’s gonna continue to make money hand over fist. But it’s not going to be in the same category as Apple, Microsoft and Google.
    • Already it feels the average age of the user is shooting beyond 40. Now this may look good as your "parent" and "grand parents" are where advertising money is : they have disposable income. But think about it : the younger generations is not using FB. And in less than 10 years they all will be gone from FB, which means the parents will soon follow, and with them the advertising dollar. It won't take much to kill the rest of the profit of FB : once advertising get the feeling the platform is dead, the cascad
      • Or maybe as old people who shit the place up die, the young people will come back.

        Personally I hope the whole thing folds. If I were in Zuckerfuck's position I'd be trying to get as much cash out of it as possible so I could have a boat drink retirement so as to have a nice place to sit and watch the world burn

        • Nope, as the old farts croak, the younger farts grow older and you still don't get the demographic that you want because you still have the (ad-wise) worthless 40+ year olds you can't sell to your customers.

      • Yup, that's pretty much what I see: I'm 41 and I rarely see posts by anyone younger than me. Also, it seems like 90% of my friends don't post there anymore.
        Facebook is for old people really. The good thing for Meta is that they managed to buy Instagram and that does have a big amount of young people in it. Although the whole "this is the hip social network now" thing is tiresome or stupid. I don't know why but young people seem to like switching SNs every two years.
        • Because their parents follow them. Parents want to see what their kids do, and kids don't want their parents to see what they do. So what happens is simply this:

          1) Kid signs up for social media network.
          2) Parents find out about social media network and sign up, too.
          3) Parents badger kid to "friend" them.
          4) Kid has to give in because, well, you can't really say no.
          5) Kid searches for other SMN because this one is now "tainted" and can't be used for "private" stuff anymore.
          6) Repeat from 1.

          • by gmack ( 197796 )

            This is where the Google+ concept of circles would have come in handy. It made it easy to share things with one group (circle) of friends and not another.

          • I don't think 41 year olds are worried about their parents seeing their Facebook posts.

      • As anyone in marketing will tell you, your target audience is the 14-25 crowd. Maybe up to 30. Anyone past that age is set in their way and near impervious to advertising. They have their preferences, they have their brands and moving them away to something different is very, very hard. Getting them excited for something new is even harder.

        You're no advertising to 30+ year olds, you're advertising to their kids and hope that the parents will rather give in to the screaming whining buoys, that you won over w

        • by gmack ( 197796 )

          brand loyalty is also a thing of the past

          That is what generally happens when marketers think a brand should be premium priced but then go sacrifice the very things that made people like the brand (quality, uniqueness etc) in the first place. We stopped being loyal to brands when brands stopped being loyal to their customers.

    • Facebook will last for about the same reason oil tankers keep moving forward after their engines have been off for a long while: Pure inertia.

  • They abruptly cancelled my internship at Facebook as a C++ developer just because I was never on time.

    Just because I'm a template metaprogrammer.
  • The problem (Score:4, Insightful)

    by backslashdot ( 95548 ) on Wednesday October 26, 2022 @10:10PM (#63001773)

    They bet the farm on AR, as in alternate reality.

  • by Subsentient ( 6901388 ) on Wednesday October 26, 2022 @10:56PM (#63001825)
    Rest In Piss. Build a company that abuses and spies on users, yields to dictatorship governments, and upends democracy while you make no attempt to stop it? Fuck yourself. Don't expect sympathy, from anyone with a functioning brain. Zuckerfuck, we are cheering for you to fail, and we're cheering because you're a giant amoral asshole.
  • The ongoing problem with Facebook is the younger generation aren't buying in anywhere near as the older generations. They see it as "your grandmother's social media platform". Kids and young adults really want their own space away from their parents / grandparents. That's where TikTok has capitalised. Same thing will probably happen to TikTok in another 20 years or so.
    • Facebook made the unforgivable mistake of catering to "everyone", forgetting that this means that, since they're a social media platform, this means that they run into the problem of wanting the kids and getting the parents, and if you have the parents you'll invariably lose the kids.

      As the platform ages, so does the user base and the very LAST thing anyone between the age of 11 and 111 wants is to share their hopes, dreams, fears and most of all secrets with their parents.

  • Founder's syndrome (Score:4, Interesting)

    by DrXym ( 126579 ) on Thursday October 27, 2022 @03:21AM (#63002121)
    Zuckerberg is so intent on being the asshole villain from Ready Player One that he is destroying his own company from the inside.
  • I'm not sure what Zuck expects from the metaverse. Maybe something like [this](https://www.youtube.com/watch?v=WFf70UH2RU0)? (shudder)
  • FB/Meta slowly going to never never land like Netscape, AOL, etc. The only one who actively uses FB in my family is my 72 year old sister who posts conspiracy / religious stuff. I maintain mine to keep it from being hijacked after I quit it in the past. Have NEVER clicked on a AD !
    • Not? But that's how you play the Metastasis game.

      First, create an online persona. The more far out and weird, the better. Then click on every ad that you get that matches this persona and see just how deep the rabbit hole can go and just what kind of batshit insane nutjobs actually advertise with them.

      It's generally advised to do that with accounts that you harvest from C2 takedowns, just to make the life of other users interesting, too.

  • Huh (Score:3, Interesting)

    by cascadingstylesheet ( 140919 ) on Thursday October 27, 2022 @06:03AM (#63002281) Journal

    Two stories almost next to each other, first Google, and then Facebook.

    Could it be, oh, I dunno, the economy? Bidenflation and all that?

    Nah, it must be {insert whatever reason we hate those two companies today}.

    • by ceoyoyo ( 59147 )

      Both of them got slapped by Apple asking people if they wanted to be tracked. Google less so because they were smart enough to get lots of people to use their OS by giving it away for free. Meta is trying to do something similar but they're a) late and b) bad at it.

  • by indytx ( 825419 ) on Thursday October 27, 2022 @06:24AM (#63002313)

    Maybe Elon can help Meta out. I bet he has some ideas!

  • Says every CEO... (Score:4, Interesting)

    by neilo_1701D ( 2765337 ) on Thursday October 27, 2022 @06:44AM (#63002357)

    the fundamentals are there for a return to stronger revenue growth ... approaching 2023 with a focus on prioritization and efficiency.

    This corporate BS is always touted when a business is cratering and nobody has a clue how to solve it.

    Except, in this case it's an easy solution:
    1. Turf Zuckerberg from anything other than a ceremonial role at Meta / Facebook / whatever. Certainly, get him out of decision-making roles.
    2. Pull the plug on the metaverse and end that division immediately.

    From the numbers in the summary alone, their net income would almost double from $4.4 bil to $8.1 bil. I get it's not that simple, but plugging the leaks will help things a lot.

    • by jvkjvk ( 102057 )

      >Except, in this case it's an easy solution:
      >1. Turf Zuckerberg from anything other than a ceremonial role at Meta / Facebook / whatever. Certainly, get him out of decision-making roles.

      Except, in this case, it's not an easy solution:
      1. Zuckerberg, who sits as both Chair and CEO, owns 58% of the Company's voting shares.

  • Couldn't have happened to a nicer company.

"The vast majority of successful major crimes against property are perpetrated by individuals abusing positions of trust." -- Lawrence Dalzell

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