Facebook lost daily users for the first time in its 18-year history which CEO Mark Zuckerberg believes was caused by the TikTok boom.
'People have a lot of choices for how they want to spend their time, and apps like TikTok are growing very quickly,' Zuckerberg said during an earnings call Wednesday, according to the Washington Post.
Facebook reported a drop of nearly 500,000 in daily logins during the last three months of 2021. Zuckerberg reiterated that Meta - the company that owns Facebook, Instagram and WhatsApp - is pushing hard to develop its short-form video Reels in an effort to compete with TikTok.
'This is why our focus on Reels is so important over the long term,' he added.
Facebook, which now only has 1.93 billion users logging in each day, also saw its shares plunged more than 20 percent in extended trading on Wednesday after unexpectedly heavy spending on its Metaverse project led to a rare decline in its fourth quarter profit.
Meta saw its stock fall 22.6 percent to $249.90 in after-hours trading, wiping about $200 billion off the company's market value.
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Just say NO.
No Meta, no media, no lies, no jaxx, no spin, no shutdowns, confront every single lie that comes our way. No lie, no buy.