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How Much Money Has Facebook and Twitter Lost?
The stock price of Facebook and Twitter fell more than 26% in two trading sessions after the US President Donald Trump was permanently banned by both social media companies. Mark Zuckerberg’s net worth has dropped to more than $32 billion, and the companies’ daily active users are down for the first time in 18 years. In addition, Meta’s stock has sank by 26%. All of these developments have made the companies more vulnerable to hacking and other issues.
Mark Zuckerberg’s net worth drops more than $32 billion
As Facebook‘s share price plunged last week, the net worth of its CEO Mark Zuckerberg dropped by nearly 30%, erasing more than $29 billion from his personal fortune. The Facebook founder owns 13% of Meta, the company that was formerly known as Facebook. The share price dropped 26% in one day, wiping out more than $200 billion in its market cap. However, even with the drop in share price, Zuckerberg still stands well within the Top 10 richest people in the world.
Facebook’s CEO Mark Zuckerberg had a rough year in 2018, with his net worth plummeting nearly $32 billion. Despite his massive success, the company faced numerous scandals and government investigations. Read also : What Did Meyers Leonard Say on Twitter?. In fact, his fortune is tied to the stock of Facebook, which plunged nearly 20% in the fourth quarter alone. While Zuckerberg is still among the top Americans in the world, he plans to give away most of it during his lifetime.
Instagram’s revenue falls 2 percent
If you’re thinking of implementing a new marketing strategy on Instagram, you may be disappointed to hear that the social media platform saw its revenue drop by two percent in December. However, there’s good news: Instagram has launched new features and improved existing ones, and you may be able to make some adjustments in your strategy. After all, the platform reached one billion active users a month in June, but in December, the news came as a shock to many.
Despite the revenue drop, Instagram still maintains a huge user base. Facebook’s revenue from Instagram was nearly $15 billion in 2016, which accounts for about ten percent of its overall revenue. To see also : Can You Tell Who Looks at Your Twitter Profile?. While Instagram doesn’t split ad revenue with its creators, the company pays them for creating videos and photos for IGTV. It also pays them for shoots and equipment, but the costs rarely reach the five-figure mark.
Facebook’s daily active users declines for first time in 18 years
The last time the two social media giants crashed, they lost around $60 million. This was during a ninety-minute outage on Monday, when Facebook apps were unavailable. As a result, Facebook has seen its user base plummet. Read also : How to Delete All Twitter Tweets. However, the company has recovered the loss of revenue with growth overseas. That being said, it remains to be seen how much Facebook and Twitter will lose in the coming months.
In the first quarter of 2021, Facebook reported revenue of $26.2 billion, up 48% from the year before. The slower growth in operating expenses resulted in a 94% increase in net income. Moreover, the company has acquired an e-reader application called Scroll, which will provide users with articles free of advertising in a subscription service. In contrast to Facebook’s opportunity, Twitter’s subscription service focuses more on niche audience. The CEO of both companies also shares his time with Square, another tech company.
Meta’s stock plunges 26%
The plunge in Meta’s stock comes as the company reports less-than-impressive earnings. The company lost less money than expected in its metaverse business. While the company did increase ad impressions from last quarter, it cut its expense forecast for the year. Despite these negative factors, the company’s stock plunge was still larger than the market capitalization of 472 other companies in the S&P 500.
The company, which owns Facebook, WhatsApp, Instagram, Oculus, and more, reported disappointing earnings and a decreasing user base. As a result, Meta’s stock plunged 26% Thursday, wiping out $230 billion of its market cap. The stock is now on track for the biggest one-day drop in valuation in US history. In July 2018, the company also showed that daily users of Facebook fell for the first time.
Facebook’s revenue falls 2 percent
As expected, the company saw its revenue fall by nearly two percent in the fourth quarter of 2018. In an earnings report released Wednesday, Meta Platforms Inc. (FB.O) said the company lost half a million daily users in the last quarter of 2021. While the loss is not a massive number, it does indicate that the company’s growth has slowed significantly in some parts of the world. In the US alone, the company is only available to about one third of Internet users. That may be a contributing factor, but this could be a symptom of a broader problem.
One of the most notable factors for Facebook’s revenue decrease is the COVID-19 pandemic. The disease has increased people’s usage of social media sites. This in turn has depressed ad prices, which offset the positive effect of more time spent on Facebook. However, the other factors that determine revenue growth, such as more hours spent on Facebook, also have slowed the company’s growth. More users means more revenue, which can reduce price per ad.
Twitter’s revenue falls 2 percent
The company’s latest quarterly financial results reflect a sharp slowdown in advertising revenue growth compared to the same period last year. While year-over-year growth peaked at 129 percent in Q2 2014, revenue has slowed ever since. Twitter’s revenue fell for a second consecutive quarter in Q1 2017, but user growth continues to increase globally. The company’s revenue came mainly from advertising, which increased by 2 percent. Subscriptions revenue fell by 27 percent, and costs associated with the pending Tesla acquisition lowered revenue by USD 33 million.
While the company reported higher usage figures, it was not enough to meet its revenue targets. Although revenue increased year-over-year, Twitter needs to increase ad revenue faster than it is growing now. The company posted a net loss of $1.1 billion in 2020, compared with a profit of $66 million in the same quarter last year. Twitter will need to increase its revenue more quickly to meet its financial goals.
