Social media juggernaut Facebook seems to still have tricks up in its sleeves. According to Meta, its parent company, the platform has amassed an impressive user base of over 3 billion monthly active users. This recent stretch of strong numbers runs counter to recent polls and reporting showing that it is struggling to attract the younger generations.
Never Say Never as 3% Spike YoY Recorded
Quarterly earnings reports play a vital role in allowing investors to gauge a business’s overall health and appeal for the long term. Recently, Meta unveiled its Q2, 2023 report card, which seems to be excelling in every aspect, impressing investors from all corners.
According to the press release, Facebook recorded a whopping three billion-plus monthly active users (MAUs) in the second quarter ending June 30, 2023.
Providing better context, Meta noted that its MAUs had spiked 3% year-over-year (YoY) for the same period in 2022.
However, that’s not all. The report also revealed that daily active users (DAUs) reached a substantial figure of 2.06 billion for Q2 of this year, showing a notable 5% YoY increase.
Moreover, the family daily active people (DAP) metric stood out impressively at 3.07 billion, indicating a significant 7% YoY surge, while the family monthly active people (MAP) recorded a noteworthy 3.88 billion users, reflecting a substantial 6% increase over the same period.
Since rebranding to Meta in 2021, the company has witnessed a significant growth in its social media apps over the past two years.
The addition of features like Reels, similar to TikTok, on both Facebook and Instagram, have been strong drivers of this immense growth.
Moreover, the recent launch of Threads, a Twitter rival, further solidifies Meta’s position as a dominant force in the ever-changing social media landscape.
However, it hasn’t been smooth sailing for the entire company. Its metaverse business has been a massive revenue sinkhole losing billions of dollars in no time.
Even some of its most popular apps are seeing worrying trends in their user statistics. A 2022 study conducted by Pew Research Center revealed that Facebook had experienced a significant decline in its hold on younger social media users.
The report highlighted that the number of teenage users in the US had dropped from 71% in 2014-2015 to a mere 32% in 2022. This shift signifies changing dynamics in social media interactivity between users and platforms.
Furthermore, the study shed light on the growing gap between US teenagers and the Silicon Valley tech giant. Only teenagers within the 13 to 17 age group seemed to show any interest in Facebook as it currently stands.
The rise of TikTok played a significant role in this divergence, as the Chinese-owned social media platform maintained a 67% interest rate among the selected age groups since its launch in 2018.
On the other hand, Google’s YouTube emerges as the clear winner in the report, boasting an impressive 95% interest rate.
Substantiating its findings, Pew Research Center noted that one-in-five teens used YouTube almost constantly by accessing the mobile app or visiting the website.
A whopping 19% of the surveyed teens confessed that they used YouTube almost every time, while 16% favored TikTok. Facebook came last, with only 2% favoring the platform for inter-global connectivity.
It’s Not All Gloom in Meta Land
The social media landscape has witnessed rapid expansion, with Facebook and its family of apps previously being the central focus of social interactions.
However, this dynamic is swiftly changing. YouTube is now offering its own TikTok clone, YouTube Shorts, alongside the incredible rise of TikTok.
With the surge in the global number of social media users, Facebook may be starting to lose control.
According to a survey conducted by Common Sense Media in 2018, approximately 70% of teenagers aged 13 to 17 check social media platforms multiple times a day – a significant increase from 34% in 2012.
Additionally, 27% admitted to checking social media hourly, 3% confessed to doing so once a day, and 4% checked several times a week.
Despite losing some appeal among the younger generation, Facebook is still growing in terms of active users and remains massively profitable. The platform reported $32 billion in revenue, reflecting an 11% YoY increase. Its ad impressions rose 34% YoY, and the average price per ad decreased by 16% YoY.
Meta also reported having $53.45 billion in cash, cash equivalents, and marketable securities, with a free cash flow of $10.96 billion for the stated period.
Speaking on the development, Meta’s founder and CEO, Mark Zuckerberg, expressed optimism regarding the company’s positive returns.
He emphasized the company’s commitment to strengthening engagement across its family of apps.
Zuckerberg also expressed excitement about its product roadmap, which includes its AI tool Llama 2, Threads, Reels, and other projects currently in development.
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