Meta’s Facebook Has Evolved Over The Years And Earning Reports Prove It’s Become Worse

One of the most noteworthy things about the platform called Facebook was linked to the goals and vision it had during its initial years. At that, a lot of efficiencies were proven in all of its quarterly earning reports.

After every quarter and year, we saw the revenue and growth of the firm jump up in a steady state. But now, we don’t see the same trend taking place as that observed in the past.

The platform was seen reaching new highs and it really rode the wave linked to how much smartphones were being adopted and ridding desktops for things like ad revenue linked to mobile devices. Everything was taking place in such a controlled manner. And this is why we’re getting such shocks after seeing the way the current Q3 earnings report unfolded before our eyes.

In 2018, Meta knew that it would be seeing a decline in its revenue and hence would be dealing with tighter margins. And in just one day, we saw investors knocking down shares by 24%. And this started to occur, year by year and it caused a mega plunge during February’s Q4 report, and that was seen in Q2 of July.

This year, we saw spending being controlled and thankfully, revenue did come up to a decent amount. And while revenue growth did take place in that period, there was no stability in the trend, and every quarter got worse than its counterpart.

The figures of revenue dropped down 4% and it was something that Meta knew would come and had even warned against in Q2 of this year. Now, we’re seeing the results come forward in the form of a mega 46% drop in the figures for operating income. And with spending up by 19%, things are not great.

There is a reason behind this too. Zuckerberg wants the firm to spend $10 billion yearly so that the metaverse would come into existence sooner than later. We’re talking about developments in the world of VR headsets so they can be explored and more developers can immerse into this new tech world.

But since the spending is so much, a lot of questions are pulling through from the side of investors. They want to see where the funds are going and where they’re being added. Some investors like Brad Gerstner wants the firm to slash the $5 spending and also eliminate the headcount to 20%.

No reports yet on Zuckerberg taking on such advice but what we do know is that the CEO does not have to come under pressure as he has some super shares that do not bind him to do anything in this world. Those on his team are very loyal so it’s a win-win situation for him.

In the past, Facebook’s main mission was more related to helping people out and hence was a social ordeal. But now, it appears to be the exact opposite as it wants to really make a lot of money to keep everyone happy and there’s nothing wrong with that.

As their old motto goes, we aren’t creating services for money but making money so we can create the best services out there.

Read next: Who Are the Top Publishers on Facebook?
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