The performance of Meta Platforms (META) - Get Meta Platforms Inc. Report is poor. The social media behemoth, which is the parent company of Facebook, Instagram, and WhatsApp, has been emitting ominous signals for some time.
Its market valuation has decreased by around $545 billion this year after it was kicked from of the top 10 most valuable firms in the world.
The market value of the shares dropped by $57.5 billion between July and September as a result of the third quarter's impending 15% share price decline.
CEO Mark Zuckerberg issued a warning at the end of June that we were headed for "one of the biggest downturns that we've experienced in recent history," and subsequent statements indicate that Meta's near future is under a heavy cloud and is about to experience a storm.
The billionaire addressed staff on Sept. 29 at Meta's customary weekly Q&A session that the company was entering a new phase characterised by slow development.
For the first time since the company's founding in 2004, Zuckerberg informed staff that Meta would be reducing its employment. This entails taking a number of steps, including freezing employment, restructuring some teams, and reducing budgets—even for teams in industries that are growing.
For instance, Zuckerberg advised staff that Meta should not take the place of departures and that it will let go of those "who aren't succeeding."
According to Bloomberg, Zuckerberg stated that he had believed the economy would have more obviously steadied by this point. However, based on what we can now see, it doesn't appear as though it has, therefore we want to make some conservative plans.
According to Zuckerberg, "for the first 18 years of the firm, we essentially grew substantially every year, and then more recently, our revenue has been flat to slightly down for the first time.