Facebook Tanks

Facebook's owner Meta has experienced a stock market value slump by more than $230bn (£169bn) last week - a record historic loss for a US firm. Its shares fell 26.4% after quarterly figures disappointed investors. The company's share price slump  saw chief executive Mark Zuckerberg's personal net worth fall by $31bn, according to the Bloomberg Billionaires Index

Facebook's daily active users (DAUs) had dropped for the first time in its 18-year history and its market capitalisation fell from$898.5 billion to $661 billion.

The drop in Zuckerberg's fortune was equivalent to the annual gross domestic product of Estonia, although with an estimated net worth of $90bn, he remains one of the richest people in the world. 

Meta revealed that Facebook's DAUs fell to 1.929bn in the three months to the end of December, compared to 1.930bn in the previous quarter. Meta also warned of slowing revenue growth in the face of competition from rival platforms including TikTok and YouTube, while advertisers were also cutting spending. Mr Zuckerberg said the firm's sales growth had been hurt as audiences, especially younger users, had left for rivals. The firm forecast revenues of between $27bn and $29bn for the first quarter of this year, which was lower than analysts had expected.

Although the company has been making investments in video services to compete with TikTok, owned by Chinese technology giant ByteDance, it makes less money from those offerings than its traditional Facebook and Instagram feeds. 

Another issue for Meta is that it’s seeing traction with Reels, a video format similar to TikTok, but the company doesn’t make as much money when users browse the Reels section as it does when users spend time on their main feeds or watching related “stories” content.

Big technology and communications companies have played a significant role in driving gains for the wider US stock market during the Coronavirus pandemic but the market seems to have shifted.  “The question is where is the next growth engine coming from.” commented one market analyst.

Marketwatch:      Fortune:     BBC:     Yahoo:      USA Today:      MSN:     Guardian:    Jordan News:   

You Might Also Read:

How Will The US Congress Decide To Regulate Facebook?:
 

« High-Tech Lie Detection Systems
Protecting Your Small Business From Cyber Attacks »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Perimeter 81 / How to Select the Right ZTNA Solution

Perimeter 81 / How to Select the Right ZTNA Solution

Gartner insights into How to Select the Right ZTNA offering. Download this FREE report for a limited time only.

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

Syxsense

Syxsense

Syxsense brings together endpoint management and security for greater efficiency and collaboration between IT management and security teams.

BackupVault

BackupVault

BackupVault is a leading provider of completely automatic, fully encrypted online, cloud backup.

CYRIN

CYRIN

CYRIN® Cyber Range. Real Tools, Real Attacks, Real Scenarios. See why leading educational institutions and companies in the U.S. have begun to adopt the CYRIN® system.

Tendo Solutions

Tendo Solutions

Tendo Solutions provides intelligence, security, forensics and risk solutions to clients across different sectors and jurisdictions.

M5 Network Security

M5 Network Security

M5 Network Security provide cybersecurity services to military, government and large corporations.

MENTIS Software

MENTIS Software

MENTIS provides a comprehensive enterprise data security and breach prevention platform to protect sensitive information assets.

CLUSIL

CLUSIL

CLUSIL is an association for the information security industry in Luxembourg.

Suprema

Suprema

Suprema is a leading global provider of access control and biometrics solutions.

BlueFiles

BlueFiles

BlueFiles enables users to send encrypted files securely while maintaining full control over recipients, access periods, downloads, and printing.

Cybersecurity Professionals

Cybersecurity Professionals

Search vacancies from top cyber security jobs worldwide on CyberSecurity Professionals. View IT security jobs or upload your CV to be seen by recruiters from industry leading firms.

Cloud GRC

Cloud GRC

Cloud GRC is an innovative cybersecurity company with solutions and expertise in Cybersecurity Strategies & Frameworks, Threat & Risk Assessment, Cloud Security, and Regulatory Compliance Requirements

Cryptyk

Cryptyk

CRYPTYK CLOUD is the first complete enterprise-class cloud security solution that includes cloud storage and broad protection against all external and internal threats.

Security Weaver

Security Weaver

Security Weaver is a leading provider of governance, risk and compliance management (GRCM) software.

Industrial Defender

Industrial Defender

Committed to ICS Cybersecurity. Industrial Defender provides a fully automated solution to discover, track and report on assets across your ICS footprint.

Avancer Corporation

Avancer Corporation

Avancer Corporation is a multi-system integrator focusing on Identity and Access Management (IAM) Technology. Founded in 2004.

SecurelyShare Software

SecurelyShare Software

SecurelyShare Software is a security software company, specializing in data security, data privacy and data governance.

Analygence

Analygence

ANALYGENCE is your trusted partner for mission support, cyber solutions, and management services.

Bugv

Bugv

Bugv is a crowdsourcing cybersecurity platform powered by human intelligence where we connect businesses with cyber security experts, ethical hackers, bug bounty hunters from all around the world.

Valeo Nertworks

Valeo Nertworks

Valeo Nertworks is a full-service Managed Security Service Provider (MSSP). We partner with organizations to remove the burden of technology so that they can focus on growing their business.