Beautiful Virgin Islands

Wednesday, Jul 30, 2025

Is Zuckerberg's Meta in trouble?

Is Zuckerberg's Meta in trouble?

The company has hit major problems amid its biggest market value wipeout ever

Social media giant Meta has delivered a gloomy outlook in its first earnings since undergoing a major rebrand in late 2021. The company suffered a staggering sell-off last week as its stock plummeted 26% and its market value plunged by more than $230 billion. Experts say Meta is in a difficult spot and more trouble lies ahead.

1. What is Meta?


Formerly known as Facebook, Mark Zuckerberg’s Meta Platforms brings together apps and technologies, including Facebook, Instagram, and WhatsApp, among other subsidiaries, under one new company brand. Zuckerberg announced the renaming in October, saying the company was transitioning from social networking toward the so-called virtual world of the metaverse.

2. What’s Meta’s biggest problem right now?


Even though Meta recorded modest gains in new users across all of its apps, growth hit a ceiling for its core Facebook social networking app, which has lost about half a million users over the last three months of 2021, compared to the previous quarter. That’s the first such decline for the company in its 18-year history.

3. How are Apple changes affecting Meta?


The iPhone maker recently announced it is considering pulling out of Europe if it’s not given the option to transfer, store, and process data from its European users on US-based servers. The problem is related to the so-called App Tracking Transparency update introduced by Apple last spring to its mobile operating system. The update allows iPhone owners to choose whether they would let apps like Facebook monitor their online activities. Apple’s changes would cost Meta $10 billion in revenue over the next year, Meta said.

4. Why is Meta losing advertising to Google?


Sharing data between countries and regions is crucial for the provision of Meta’s services and targeted advertising. Apple’s changes have given advertisers less visibility into users’ behaviors, so many have started shifting their ad budgets to other platforms, primarily Google. Unlike Meta, Google is not heavily dependent on Apple for user data. The company reported record sales, particularly in its e-commerce search advertising. Meta called out Google’s advantage during a disappointing earnings report, claiming “Google’s search ads business could have benefited relative to services like ours that face a different set of restrictions from Apple.”

5. Who are Meta’s other major competitors?


The network is facing stiff competition from rival platforms like TikTok and YouTube Shorts. In response, Meta has shifted focus toward short-form video like Reels, to rope in young adults. Zuckerberg said having to compete for users’ attention with other social media apps – primarily, TikTok – is an obstacle that could inhibit Facebook’s growth in the future.

6. Why is Zuckerberg’s virtual reality world facing backlash?


Mark Zuckerberg’s push into Metaverse, a virtual world accessible through goggles or glasses, has led to an avalanche of criticism. Experts say the concept has the same old issues, like privacy. One of Facebook's earliest investors, Roger McNamee, has even labeled the social media giant's plans for a metaverse as “dystopian,” saying there’s much misinformation on the platform. Zuckerberg said last year that Meta would need to invest many billions of dollars for years to come before the metaverse reaches scale. The company has already invested more than $10 billion in 2021.

7. Why are governments cracking down on Meta?


In recent years, Meta has been involved in multiple controversies regarding privacy violations, and is facing antitrust investigations around the world. Mark Zuckerberg has argued that Meta is not a social networking monopoly. He has pointed furiously to what he calls “unprecedented levels of competition,” including from TikTok, Apple, Google, and other future opponents. Regulators have been addressing the Big Tech's anticompetitive conduct, and there are signs that US antitrust regulations may be about to toughen.

8. Is Meta in trouble?


The size of the Facebook parent’s collapse illustrates just how tech companies have ballooned in size to become behemoths with unprecedented market power, analysts say, pointing to the drama that can ensue when they fall. They point to the volatility that has gripped the technology sector this year, noting that the mood on Wall Street has turned decidedly bleak on the long-time market darling. According to some analysts, Meta found itself in “the middle of a perfect storm.” Others say that “the cuts run deep,” adding this could be “the beginning of the end.”

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
×