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Facebook faces revenue drop, as TikTok gains ground

Facebook  Meta Platforms Inc is expected to post its biggest drop in daily users and its first decline in revenue,

as the company struggles to adjust to growing competition from TikTok.

Average-daily-user numbers could show largest-ever retreat in quarterly earnings report!

The company is expected to report quarterly revenue of $28.9 billion, according to analysts surveyed by FactSet. That figure would be down 0.6% from a year prior and would represent the first time that the company has posted a quarterly drop in revenue from the year earlier.

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This would represent the third quarter in a row the company’s net income has declined, something Meta hasn’t experienced since the fourth quarter of 2012.

Meta is grappling with a digital advertising market in upheaval from soaring inflation and other factors that are causing a slowdown in ad spending. Google.

on Tuesday reported the slowest rate of growth since the second quarter of 2020, when the pandemic crimped demand for advertising in some areas.

Rival Snap Inc. reported its weakest-ever quarterly sales growth last week while Twitter reported a decline in revenue.

This year the company’s shares had fallen nearly 51%, and it had lost $448 billion in market value since Feb. 2.

Facebook’s decline in daily users comes three months after Chief Executive Mark Zuckerberg said the company would change how users would see content, in a bid to boost engagement. The company would use artificial intelligence to recommend content to Facebook and Instagram users from around those social networks, rather than solely showing users content from accounts they already follow.

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This effort mimics one of the signature features of rival TikTok, which Mr. Zuckerberg in February said posed stiff competition for Meta.

In addition

The company’s Reality Labs division, which includes VR hardware, is expected to post revenue of $431 million for the quarter, according to FactSet.