Meta face the same fate After Twitter

Meta loses a quarter of its value. $89 billion evaporated in one day.

Mark Zuckerberg :

Media reports have said that Mark Zuckerberg, CEO of the Meta Group, which owns Facebook, plans to lay off employees after the company’s shares lost 70 percent of their value this year, forcing it to stop hiring.

This comes amid gloomy expectations of poor performance and a significant increase in costs next year, which will lead to a collapse in the value of the company’s $67 billion shares, as well as a loss of more than half a trillion dollars in the value of shares this year.

To make matters worse, it coincides with Meta’s global growth slowing in the face of TikTok, which is rising strongly in the world of social networks.

The Wall Street Journal reported that Facebook layoffs will affect thousands of employees, noting that the process could take place this week, specifically by Wednesday.

Zuckerberg wants to terminate the services of about 12,000 employees of the company, and the evaluation of these employees revealed that they are among the poor performers, knowing that the number of employees of the company is 87,000, according to figures last September.

The Wall Street Journal said the company planned to inform employees of the matter this week.

This layoff will be the largest of its kind affecting the tech sector, despite the rapid growth it has achieved during the coronavirus pandemic.

In preparation for this, the company informed its employees not to travel unless absolutely necessary.

job massacre :

A few days ago, Twitter witnessed what was described as a “job massacre” that affected 50 percent of its employees worldwide.

American billionaire Elon Musk, who acquired the platform, justified the decision to lay off employees, revealing the benefits they received, saying: “In terms of reducing Twitter’s power, unfortunately there is no option when the company loses more than $4 million a day.” “Whoever leaves the service receives compensation for 3 months, which is 50% more than the amount required by law.

The company’s stock fell 25% as investors rushed to sell after announcing a decline in revenues

More than $89 billion of the market capitalization of Meta, the parent company that owns Facebook and other apps, evaporated and the company lost a quarter of its market value in a single day, just Thursday’s trading.

Wall Street markets in New York closed after Meta fell 25 percent as investors and shareholders rushed to sell following the company’s announcement of a decline in its financial revenues, giving the impression that its coming days will be harder than the current and worse.

Meta’s stock fell after the company joined a host of other big tech companies in a warning of an economic slowdown hurting its advertising business, as brands spend less on marketing.

A report published by the British newspaper “Financial Times” on its website, and seen by “Al-Arabiya.net”, stated that “in addition to the broader macroeconomic problems, Meta faces a range of challenges, including increasing competition for its Instagram platform from competitors such as the short video application TikTok, and difficulties in targeting and measuring ads due to changes to Apple’s privacy policy that affect users from the iPhone campaign.”

Latest News:

Meta said late on Wednesday it expected revenue in the current quarter to be between $30 billion and $32.5 billion, compared to analysts’ forecast of $32.2 billion.

Net income in the third quarter fell 52 percent to $4.4 billion, down from previous estimates of $5 billion.

Revenue also fell 4 percent to $27.71 billion, the slowest pace of growth since it went public in 2012.

Meta founder and CEO Mark Zuckerberg warned that the company faces “near-term challenges in terms of revenue,” but said “the fundamentals are there to return to stronger revenue growth.”

In a call with analysts, Zuckerberg doubled down on his biggest bets, including developing a short video format to compete with TikTok, business messaging and metaverses, and tried to reassure investors that investments in these areas would pay off in the long run.

“I appreciate patience,” he said. I believe that those who are patient and invest with us will end up rewarding,” he said, noting that the company was doing “groundbreaking work” on a line that would have “historic significance.”

Meta’s disappointing earnings came amid a large-scale sell-off in shares of tech majors, with shares of Alphabet, Google’s parent company, falling more than 9 percent on Wednesday after it reported an unexpectedly sharp slowdown in its core search advertising activity, while Snap’s stock fell last week after recording its slowest pace of growth since it went public in 2017.

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