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Meta Faces Unprecedented Competition from TikTok

According to the recent quarterly report of Meta, the company has lost approximately $240 billion of market value due to daily users falling daily. This is for the first time ever.

In a virtual companywide meeting, CEO Mark Zuckerberg has told staff their way up again would be through videos. That’s right, the CEO has stated that the company is facing “unprecedented level of competition” from TikTok, a video-focused social networking company owned by Chinese company ByteDance Ltd.

In a report by Bloomberg, Zuckerberg has advised employees to zero in on Instagram reels, their Tiktok-like feature. “People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly,” he stated.

Reports by Meta shows over a decrease of over a million daily active Facebook users. The company has also revealed that they lost $10 billion on Metaverse investments in 2021.

Meta is the official rebranding of the social media giant as revealed by founder and CEO Mark Zuckerberg last year. It was explained in the founder’s letter that the rebranding is part of focusing on the metaverse.

“The defining quality of the metaverse will be a feeling of presence — like you are right there with another person or in another place. Feeling truly present with another person is the ultimate dream of social technology. That is why we are focused on building this,” said Zuckerberg.