Meta still hasn’t gotten rid of the problems that Apple and TikTok are giving it

Strong competition from TikTok and the negative effects of Apple’s updated privacy policy, which was introduced more than a year ago, will continue to affect the development of Meta* (owner of Facebook*, Instagram* and WhatsApp). This is reported by the Reuters agency, citing Wall Street analysts.

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At least 16 brokerages cut their forecasts for Meta* assets after the company reported its first quarterly earnings decline, underscoring the challenges facing U.S. companies and fueling fears of a looming recession. Shares of Meta* fell 6% to $159.8 on the first day after the report was released. The company’s market capitalization topped $1 trillion last year, but fell to $900 billion in December.

With the release of iOS 14.5, Apple introduced a new privacy policy that makes it much harder for players like Meta* and Snap to target in-app ads. Analysts say these changes, along with TikTok’s aggressive growth in popularity, are fueling fears of a recession. Now Meta* has to bet on Reels, its own clone of TikTok, which is taking up more and more space in users’ feeds. Unfortunately, the move forced the company to partially eliminate the most profitable content, which could reduce revenue in the short term before sustaining revenue growth.

Analysts admit that in 2023 Meta* may return to strong positive momentum, but they are skeptical about the metaverse’s strategic plans; they can be seriously disrupted by regulatory measures; relevant agencies around the world are actively tightening their policies against large tech companies. . Another negative factor is the actions of the US Federal Trade Commission (FTC), which, through Justice, is trying to prevent the acquisition of Within Unlimited, a company that develops applications for virtual reality.

* It is included in the list of public associations and religious organizations, regarding which the court made a final decision to dissolve or ban the activity, based on No.

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