What's behind the drop in daily Facebook users?

For the first time in its 18-year history, Facebook has seen a drop in its number of daily active users. In addition to being a cause for concern for Mark Zuckerberg and a real catastrophe for Meta's actions, this is a strong indication of new internet consumption habits.

While Facebook has a drop in indicators of “hard users”, TikTok, which is the social network on the rise at the moment, has reached the mark of 1 billion monthly active users. In this respect, Zuckerberg's network continues to do well, with 2.91 billion users, but with a trend towards stability.

Company devaluation

Mark Zuckerberg interacting with avatar
Metaverse is Mark Zuckerberg's main bet to turn the game around in favor of Facebook and Meta. Credit: Goal/Disclosure

However, the drop in the number of daily users is just one of the many headaches Mark Zuckerberg is having with his companies. This news caused the company's shares to fall 26%, which reduced the company's market value by US$ 250 billion (R$ 1.3 trillion).

This was the biggest daily drop in the market value of not just Facebook, but of any US company in the history of the capital markets. That ended up pulling stocks on other platforms like Twitter, Snap and Pinterest down.

As a result, the Nasdaq index, the stock exchange with the largest technology companies in the world, dropped 3.7% last Thursday (3). While the Standard & Poor's 500, which lists the 500 highest-rated assets on the New York stock exchanges, fell by 2.4%, one of the biggest in 2022.

Why is it falling?

According to Zuckerberg, the drop in the number of daily active Facebook users is mainly due to the departure of the younger audience from the platform. According to the executive, many young people left the social network and migrated to rivals, especially TikTok.

This is an indication that the consumption of content is changing, especially in relation to videos. Today, the trend among young people is the consumption of short videos. Most of these videos are even originally posted on TikTok or Kwai and then reverberate on other social networks.

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With an eye on this, Meta itself has invested heavily in resources that facilitate this type of content consumption, such as Instagram's Reels tool. Google also created a platform for videos in this format within YouTube, Shorts.

This change in content consumption has made the work of media sales very difficult, as well as the segmentation and measurement of advertising results on Meta's networks. According to the company's chief financial officer, Dave Wehner, this could cost more than $10 billion.

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