If you want to know how much Facebook is worth today, it's a good idea to keep up with the latest news in the social networking space. Facebook's parent company, Meta, lost half a million users during the fourth quarter of 2021. As a result, its net worth has dropped by more than $31 billion. The company's user base has declined for the first time in its history.
You'll learn how Facebook's popularity has impacted its valuation, and how much money you can make from your account. Once you have a clear picture of your Facebook value, you can start building your strategy to maximize your earnings.
As Facebook continues to grow and gain market share, its value is increasing too. In recent months, the company has faced a torrent of criticism and has taken steps to prevent the spread of hate speech.
However, in June 2017, the social media giant surpassed two billion monthly active users. Despite these issues, Facebook is still a titan of Silicon Valley with more than 30,000 employees and a market cap of $346.4 billion to $468 billion.
It is difficult to estimate how much Facebook is worth. Net worth is more concrete than market capitalization, which is not affected by fluctuating stock prices. To find facebook's net worth, look at its financials, including the profit and loss and balance sheet statements, which are publicly available through the company website or investment news sites.
A Little Facebook History
Founded in 2004, Facebook was a sensation when it first raised $15 billion in Series D funding. The company was backed by the Samwer brothers, who contributed $15 million to the $375 million round. The Samwers are well-known serial entrepreneurs who co-founded Alando (which eBay acquired for $54 million) and Jamba (which Verisign bought for $273 million, now part of News Corp). They also had stakes in Twitter and Zynga, and they are currently in talks to buy a large stake in Twitter.
In 2008, Hong Kong billionaire Li Ka-shing purchased a large stake in Facebook. At the time, the company was valued at $15 billion, and he paid only $120 million for shares. Today, those shares are worth over $800 million. Although this number may seem low, Facebook has been able to improve its business model through better user experience, resulting in a doubling of its market value in five years.
Meta's market cap dropped more than $232 billion
If Meta's market cap drops further, the company may not be able to recover its losses by the end of the decade. The company's first-quarter revenue outlook fell short of expectations by $2 billion, which triggered a selloff in the stock. It had been expecting to continue building its reputation through consistent execution and increased revenue per user, but its latest forecast merely reflected the hangover of the digital ad party that took place during the last 18 months. Yet a senior equity analyst at Morningstar believes the stock still presents a good opportunity.
The stock's fall follows a similar downward trajectory as Facebook, which reported a rare profit decline in its fourth quarter. This decline was partly the result of weaker-than-expected first-quarter revenue and increased skepticism about the company's metaverse plans. After all, Meta was a hot commodity six months ago, riding on its success. But now it's in a downward spiral.
The stock's decline has been accompanied by a number of challenges for Meta, including competition from Tik Tok and changes to iOS privacy policies. Furthermore, the company's user base is dwindling as it battles messaging services and TikTok. Consequently, the stock's value has declined by nearly two-thirds in just one day. With its new competitors like WhatsApp, messaging services and TikTok, Meta's share price is bound to plummet further in the coming years.
The company's fall surpassed Apple Inc.'s $182 billion drop in September 2020. Apple, Microsoft, Tesla, and Amazon all suffered massive drops in market value in recent years. However, Facebook's decline surpassed these firms' records. This is a sign that the company is expanding its business beyond the realm of social media apps and Instagram. So, the question is: what will drive the company's growth and what will keep it alive?
Facebook's parent company, Meta Platforms Inc., reported disappointing fourth-quarter results. It blamed the recent changes to Apple Inc.'s privacy policies on its earnings report. It also failed to generate advertising revenue from its video service Reels. And it added costs due to changes to Apple's operating system. This may not be the right time to buy Meta's stock, but it is definitely a time to sell if you're worried about the company's growth.
Facebook's user base has declined for the first time in its history
In the most recent quarter, Facebook reported a decline in daily active users globally. Despite its seemingly unstoppable growth since its inception 17 years ago, the drop in usage may reflect a natural migration of users to other parts of the Facebook ecosystem. The growth of Instagram, Facebook Messenger and WhatsApp has surpassed the decline in users in recent quarters. Facebook's strategy of segmentation could be paying off. Among young American users, the drop in usage was largest.
According to a report released by Facebook's parent company, Meta, Facebook has lost half a million daily users in the fourth quarter of 2021. While Facebook's user base is still 1.93 billion, the decrease represents a much wider shift away from the social network. Meanwhile, Meta's other properties saw flat growth in the quarter, adding a further 10 million daily users to Instagram and WhatsApp.
The news came after a recent interview between Mark Zuckerberg and stock market analysts. Zuckerberg discussed TikTok, the impact of Apple's new policy that requires iPhone users to consent to tracking, and a decline in Facebook's user base. As a result, the company's growth rate may now plateau at 2.91 billion monthly active users. In addition, users are leaving Facebook for other platforms such as TikTok.
The company did not break out daily active users for its Instagram platform. The company plans to ramp up spending on its Reality Labs division in anticipation of the next major computing platform – virtual reality. The fall in user numbers coincides with a drop in the number of users in the US and globally, as the company has run out of new countries to enter. With the decline in users in the US, Meta stock has fallen 24.5%, wiping out $220 billion in market value in the worst drop in Meta stock's history.
While this decline is certainly unfortunate for the social network, it is not surprising that it has lost daily users – particularly in its home country. The company needs to invest more money in content creators and its metaverse vision to continue to thrive. Currently, Facebook invests $10 billion per year in the platform, with no profits to show for years to come. This is an excellent time to consider investing in Facebook's metaverse vision – the next phase of the great Facebook decline.
TikTok's impact on Meta's ad biz
Facebook and Instagram, which are both owned by Meta Platforms, are reeling from the rise of TikTok. Analysts at BofA Global Research estimate that TikTok users spend 90 minutes a day on the video-sharing app. And, while the platform isn't ready to throw in the towel yet, it is attempting to entice advertisers with new features.
But what is the company doing to counter the backlash? The parent company of Facebook, Meta, is waging a public relations campaign against TikTok and attempting to turn public opinion against it. The company is paying a marketing firm to write op-eds and letters to the editors in regional newspapers and promoting stories about alleged TikTok trends, which originated on Facebook. It's also attempting to draw local politicians to the issue. These bare-knuck tactics are becoming increasingly common in politics, but they're particularly striking in the tech industry, where Facebook is trying to win back younger users.
Facebook's daily active user growth is flattening, but the company says TikTok is already stealing ad revenue from Facebook. Apple's new privacy rules will also hurt Meta, since it requires iOS users to grant permission to track ads. Apple estimates that the change will cost the company $10 billion by 2022. But, in the meantime, Meta's ad biz will continue to grow and evolve as a social media powerhouse.
As the world grows increasingly digital, it's hard to imagine a company like Meta surviving without TikTok. And, in the wake of TikTok's rise, the company is trying to keep up by promoting its app Reels. The company is also aggressively promoting it in Instagram and other social media channels. If Meta can't keep up with the competition, it will be out of business.
The combination of entertainment and advertising makes TikTok a massive threat to the ad biz of both companies. In FY2021, TikTok is poised to adapt to Facebook's Instagram Reels format. If Meta can master the market before then, it should be able to capitalize on its new ad revenue stream. But despite its aggressive strategy, Meta hasn't yet mastered the video format.
Mark Zuckerberg's net worth has dropped $31 billion
Over the past few years, Facebook founder Mark Zuckerberg has significantly increased his net worth, but on Thursday his net worth fell by an impressive $31 billion. Most of his income comes from shares in Facebook, and he only receives a $1 base salary. However, the recent collapse of Meta platforms has sent his shares down by as much as 24% on Thursday. With the decline of Meta's shares, Zuckerberg's net worth has plummeted.
The plunge in Meta's stock price wiped out nearly $31 billion of Zuckerberg's net worth. The resulting stock market fall has pushed the Facebook CEO down three spots on the Bloomberg Billionaires Index. Zuckerberg's fortune has fallen by $26 billion, while that of his rival, Delta Air Lines Inc., has dropped by nearly $30 billion. In spite of the tumultuous days, Zuckerberg's net worth remains the tenth-richest person in the world, surpassing Jeff Bezos, Warren Buffet, and Elon Musk.
Despite the recent decline in Facebook's stock price, the CEO's net worth has risen dramatically during this stock market boom. The company's IPO in 2008 made Zuckerberg a billionaire at the age of 23 and it has since ballooned to more than $10 billion. In addition to Facebook, Zuckerberg has acquired Instagram and WhatsApp, which has further increased his net worth.
The recent decline in Mark Zuckerberg's net worth is the result of several factors. First, he made several changes to his social network, such as renaming it Facebook. Also, Meta's stock fell sharply on Thursday, while the number of monthly users on the platform decreased significantly. And third, the company's stock price fell after it disclosed that its competition is eating into revenue and its active user base has dwindled for the first time.
Meta Platforms FB net worth Prediction 2023
For the next few years, Meta Platforms' stock price may rise, as it's likely to be able to overcome privacy issues and other concerns. Given its massive ecosystem, the company should continue to be the world's largest digital advertising platform. In fact, its stock price may even surpass its recent forecasts, as the company's valuation may be undervalued relative to its FAANG peers. However, it's still too early to make a definitive prediction.
For the first quarter of 2022, Meta Platforms is guided to grow revenues by 3%-11%. This represents a modest growth from the 48% growth it experienced in the first quarter of 2021. On the other hand, the company has acknowledged it's experiencing headwinds in ad impressions and price growth. Despite this, the company's CFO Dave Wehner has attributed this slow growth to changes in its platform and regulatory requirements regarding targeted ads.
This year, Meta Platforms' stock price is predicted to reach $290.4. In April, it will reach $511.4. By the end of 2023, the company's stock will reach $489. By the end of the five-year period, it is expected to reach $2,056. Depending on market sentiment, the stock's value could rise by 20% or more. If you're looking to buy Meta Platforms' stock in the near future, you should do it while the stock's price is high. If you're not looking to buy the stock, it could be worth selling while it's cheap.