Meta hit by loss of stock prices

The share price of the parent Facebook company “Meta” has been reduced, and revenue is also declining.

The company's financial situation became known Wednesday after the company updateed investors for the past three months.

Sales contracted by 4 percent compared with the previous year to $27 billion, while profits were halved.

The company, which also owns the Instagram and WhatsApp, is facing difficulties because companies are cutting advertising budgets in the face of economic uncertainty, changes in Apple's privacy quality, and competition from rivals like TikTok, which is continuing to rise.

“While we face short-term income challenges, there are elements for a return with higher revenues”, chief executive Mark Zuckerberg said in a statement.

“We are approaching the year 2023 with a focus on priority and efficiency that will help us sail into the current environment and display an even stronger” company, he added.

Investors' confidence declined in February, when the company found that it had lost everyday users for the first time ever.

Later, in July, the company reported its first quarterly drop in revenues, as companies frightened by economic prospects lowered their advertising budgets.

On the other hand, analyst Debra Williamson said the company was “on the swing when it comes to the company's current business situation”.

Mark Zuckerberg's decision to focus his company in the promised future of error turned his attention away from today's unfortunate reality: Meta is under extraordinary pressure”, she stressed. /Periscopi/