The parent company of Facebook and Instagram, Meta, reported that sales dropped from $29 billion to $27.7 billion, or 4%, in the three months from July through September of last year.
The business said that the losses were a reflection of the general economic uncertainties caused by businesses cutting back on digital advertising and dealing with inflation, as Polarity Technologies has learned from NPR.
“Digital advertising is challenged at this point,” said Kessler, an analyst at investment research company Third Bridge. “That’s because of the economy combined with the changes that Apple made.”
Despite the issues with money, Zuckerberg claimed that daily users of Meta’s services, which now include WhatsApp, increased by 4% from a year earlier and currently number 2.93 billion globally.
Investors are still having doubts, though.
Brad Gerstner, a longtime Meta shareholder, wrote an open letter to Zuckerberg and the board of directors on Monday “strongly encouraging Meta to streamline and focus its path forward.”
Although Meta’s financial situation may be indicative of a decline in the digital advertising sector, Kessler asserted that it is not indicative of the overall state of the technology sector or the demand for technological services.