It is estimated that social networking stock Facebook has dropped 35% of its value since the beginning of the year, thereby wiping away $ 250 billion in market capitalization.
Last week, the beautiful ending with a fairy wedding between the male and female lead couple in the Korean movie “Crash Landing on You” but the real life version is attracting the attention of many fans. As for the financial market, the question: Facebook or now the parent company, Meta, will land anywhere is also a focus.
For the first time in 18 years, Facebook’s daily users dropped. Users decrease, which means the data they get from them also decreases. And for a company that operates on a data-driven platform model, this is a fatal blow, directly affecting revenue from advertising sales.
No longer “only a market”
It’s not too much to say that Facebook is “on all sides of the enemy’s life”. The first was from business rivals when Apple took a direct hit.
When comparing advertising costs and successful performance, in many areas Facebook is losing ground with some social networks.
|Mark Zuckerberg’s Facebook is facing more and more competition (Image: Shutterstock)|
According to a survey by the advertising support tool Agora Pulse, with the same amount of money spent advertising on Facebook and Youtube, the number of shares, clicks and product trials showed that CEO Mark Zuckerberg’s social network did not and “one more market alone”.
Not to mention the appearance of many new players who are “robbing” Facebook’s users like Tiktok. Obviously, business rivals are all trying to strangle Facebook.
Business rivals are all trying to strangle Facebook.
Europe is increasingly losing faith in Facebook
What about governments? At home, the specter of antitrust is being constantly used by both the executive and legislative branches of the United States. The US Federal Trade Commission sued Facebook for using its acquisitions of Instagram and WhatsApp to maintain a monopoly position. On the other side of the Atlantic, a data law is expected to be introduced by the European Union EU at the end of this February. The transmission of data outside the 27 member countries will be strictly controlled, which is expected to have a great impact on Facebook.
“If you don’t use Facebook anymore, so be it”, this is the common reaction of many Europeans and even leaders of many European countries when Meta implies withdrawing Facebook and Instagram from this continent. The European Commission’s Data Act, expected to be published at the end of February, proposes to impose strict measures, restricting the transmission of European customer data outside the EU.
The regulations relate mainly to US online platforms, including Facebook. The European side affirmed that the law is the law, and doing business on European soil must comply with European law.
|Meta threatening to withdraw from Europe is sparking a movement to actively delete Facebook and Instagram accounts|
“We live well without Facebook, and we will still live very well without Facebook. These digital corporations are not used to resistance. We are determined to resist, in the name of European sovereignty. “, emphasized Mr. Bruno Le Maire – French Finance Minister.
Meanwhile, German Economy and Climate Minister Robert Habeck said: “After my Facebook account was hacked, private messages were made public, I deleted my account. I lived without Facebook, no Twitter for the past four years, it’s been amazing. I don’t mind if they pull out.”
I’ve lived without Facebook, without Twitter for the past 4 years, it’s amazing!
Facebook’s threat is not actually aimed at Europe, but mainly to pressure the US side to negotiate with Europe a data exchange agreement that is more beneficial to US businesses.
Until now, Facebook and Instagram user data in Europe is still being transferred to California (USA) for storage and processing, according to lax legal regulations, the level of security is even more obscure. The Data Act, when effective, will unilaterally create a tight legal corridor, regaining data autonomy for the European side.
“I think we have to care about what happened. We were too naive. Europe is an open continent, we will continue to be, that’s very important. But we also have to withdraw. “It’s not about protectionism, but everything has to be clear and predictable,” said Mr. Thierry Breton, European High Commissioner for Markets. domestic school emphasized.
Europe is an important market for Meta. In the last quarter of last year, a quarter of Meta’s global sales were from Europe. Each European Facebook or Instagram user brings in $19.7 per year, which is one and a half times higher than the global average.
But increasingly, Facebook is increasingly discredited in Europe, after a series of scandals infringing on personal privacy and misuse of user data. Meta’s threat to withdraw from Europe is sparking a movement to actively delete Facebook and Instagram accounts.
Pioneer or slow in the Metaverse?
Last year, Facebook accepted to “burn” more than 10 billion USD for the department specializing in researching hardware and software platforms for Metaverse. But is Facebook’s Metaverse really enough to bring the company into a new era?
After CEO Mark Zuckerberg announced the change of the company’s name to Meta, the phrase “metaverse” quickly became one of the leading keywords on the Internet. The number of searches for this keyword has increased 20 times on Google, in which, most of the citations are related to Facebook.
However, according to experts, Facebook seems to “have a reputation but not a piece”. This company has just officially launched its first virtual world platform – Horizon World late last year, mainly focusing on bringing games.
With Metaverse, Facebook seems to “have a reputation but not a piece”
Meanwhile, virtual world games similar to Roblox and Fortnite, have now attracted more than 100 million regular users, mainly young people. Not only are the competitors ahead, but Facebook’s metaverse also seems to be losing ground to direct competitors like Snap.
“When you look at Snap, you can see they’re getting very close to the Metaverse, with features like creating 3D avatars, being able to change costumes like reals on AR glasses. I think they’re way ahead of the features Facebook is working on. There are now,” said Mr. Brent Thill – Analyst, Investment Bank Jefferies. Investment experts also criticized Facebook’s Metaverse vision as being too broad, covering many fields and not having a focus on birth. clear words
Investment experts also criticized Facebook’s Metaverse vision as too broad, covering many fields and without a clear focus on profitability. This is very different from Microsoft’s Metaverse project, which only focuses on strengths as a foundation for businesses.
“Metaverse is the next layer of foundation we’re building on as the physical and virtual spaces of businesses increasingly come together. The Mesh app aims to create a seamless shared experience for company members right out of the box. on Microsoft Teams,” said Microsoft CEO Satya Nadella.
There is no denying the ability to stir up the Metaverse virtual universe playground that Facebook has created. But to pioneer is still a big question mark. The delay in front of the opponents is already obvious. Mark Zuckerberg needs to change to not become “new bottle, old wine”.
Leaving Facebook, many users run to Tiktok or Youtube, but these are the two websites that are collecting the most information. And while YouTube, which belongs to Google, uses that data to sell ads. Then Tiktok let 3rd parties exploit information. As for what they exploit, no one knows.
Facebook’s “landing” is certainly a wake-up call for other tech giants, if they don’t learn to respect user data – a real gold mine but can also explode at any time.
(According to VTV)
Why can’t Facebook ‘break up’ with Europe?
Facebook can hardly say goodbye to Europe due to the potential that this market brings in both revenue and number of users.