It has happened for the First time in US history that a company that owns the world’s second-largest digital advertising platform after Google plunged as much as 26%.
Also, Facebook’s owner Meta said that: “Facebook’s daily active users (DAUs) had dropped for the first time in its 18-year history“.
Due to a massive decrease in the share price, the chief executive Mark Zuckerberg’s net worth fell by $31bn.
But the main reason for such a huge dip in Meta’s Facebook was due to its two biggest competitors and they are the very popular YouTube and TikTok.
A lot of users left Facebook and went to these rivals and most of the users who left facebook were the younger ones.
This COVID-19 has impacted many companies and some went from profits to losses while others get to start new ventures and all the thanks to the users.
And here are the two main reasons for a huge dip of $230 Billion in Facebook:
So, due to COVID-19, every other individual was at home especially the young ones who are almost 50 to 70 percent of the Facebook users, but people get bored and turned to more entertaining apps such as TikTok where they can explore their talent and can scroll videos that never ended.
The same young users also turned to the second biggest rival of Facebook’s Meta that is YouTube where people got more attracted when they introduced YouTube Shorts.
But now it’s clear that Meta is ready to invest billions of dollars in video services to give a tough time to their competitors.
And if you want to add something or want to know more then let us know in the comment section below.