Meta, the company formerly known as Facebook, is turning to video for the second time, as its stock continues to fall.
Facebook stock fell 25% on Thursday after the company reported its first daily user drop. This is a loss of $240 billion in value, which is more than the value of McDonald's. It was the largest single day fall in the value of the dollar in US history. history of stock exchange
Meta CEO Mark Zuckerberg lost $30 billion in his net worth in the fourth quarter, and the company lost $10 billion on its "Metaverse" investment.
According to The Guardian, Zuckerberg said on Thursday's earnings call that, while he was "proud" of the company's work over the past year, it faced stiff competition from other streaming and social media rivals such as TikTok and YouTube.
According to Bloomberg, Zuckerberg said in a company-wide virtual meeting on Thursday that Meta was facing an "unprecedented level of competition" from TikTok, and as a result, the company is focusing on the Instagram Reels short-video product. . In the United States, Reels premiered. Meta answers for TikTok will start rolling out in August 2020.
Facebook has pushed for more videos on its platform in the past. It all started when Zuckerberg announced that video was the future of Facebook and media in 2015.
Facebook made its point citing statistics that a large number of people were not only watching but also watching videos in their feed for a long time. Advertisers pour more money into videos after seeing these statistics.
However, according to The Wall Street Journal, Facebook miscalculated several key video metrics for advertisers in 2016. Facebook later acknowledged in a statement that it had made a "mistake", but that it had made a "mistake". As it was discovered and reported to its partners of the error, causing outrage among many advertisers. Meta was counting views longer than three seconds in its "average," ignoring all users who scrolled through the video, which was a big mistake.
Facebook was sued in a class action lawsuit in October 2018. According to the lawsuit, Facebook executives rejected an employee's suggestion to improve an advertising metric because they believed it would hurt revenue.
According to the lawsuit, senior Facebook executives knew for years that the company's "potential reach" function was exaggerated and misguided, but they did nothing about it and attempted to hide the problem.
Facebook Watch, the company's video-on-demand service, was launched in August of 2017. In August of 2018, the service was made available to all Facebook users around the world.
TikTok, which overtook Google as the most visited internet site in 2021, is facing an uphill battle against Meta.