Syed Imran Haider 
Undoubtedly, Facebook is the world’s most famous and frequently used social media platform. Almost two decades since it launched, Facebook continues to grow regularly, even as Meta – the parent company, has brought significant cuts to the business.
As of February 1, 2023, Meta announced that Facebook gained about two billion active users. The company also reported its fourth-quarter earnings. The document reads Facebook had 16 million users during the last quarter, which has reached two billion daily users.
The biggest source of earnings through AdvertisementsÂ
Although Meta does not mark Facebook as the first of its platforms to have reached two billion regular active users, it shows that the company’s most significant source of earnings through advertisement continues to grow.
Meta recently hit the headlines for making significant cuts to its business in the recent time. Mark Zuckerberg, the CEO of Facebook, referred to the company’s latest reformation, which led to the downsizing of more than 11,000 employments. The CEO praised the staff in a statement and said that the Year of Efficiency is the term for the company’s management theme for 2023.
Meta’s shrunk revenue over the last year shacked the company, but it made $32.2 billion in revenue in the fourth quarter of 2022. It was comparatively better than the company expected earlier, even if it met with a 4% decline from 2021.
According to Zuckerberg, who was talking to analysts over a call, Meta will keep making cuts as it puts efficiency as the top priority. He also noted that Meta plans to prioritize generative AI in the year ahead. The Meta owner believes that generative AI is a tremendously new and exciting technology with diverse applications. He has several goals for the company, including building on its research to emerge as a leader in the area of generative Artificial Intelligence.
Loss of Metaverse InvestmentsÂ
Unfortunately, Meta has lost lots of money in the wake of metaverse investments, and it continues to do so. According to Meta, the division of Reality Labs that oversees its Virtual Reality, Augmented Reality, and metaverse-related projects have lost $4.3b in the fourth quarter of 2022 and $14b for the whole year.
Meta, upon different speculations, confirmed that it anticipates losing more money because of Reality Lab in 2023. Susan Li, the CFO at Meta, the company still expects its Reality Labs losses to multiply in the year ahead. Meta will continue to make meaningful investments in the field, given it sees considerable long-term opportunities.
The company’s decreased revenue has many reasons behind it, and Reality Labs’ losses are one of those issues over the last year. Zuckerberg believes that the tech company has recently undergone many modified phases and it continues to do it more than in past years.
According to Meta’s CEO, the company cannot treat everything as it copes with its hyper-growth. Many areas will rapidly grow, or there will be more kinds of potential investments that Meta might like to make.
