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IPFS News Link • Social Networking/Social Media

Facebook Unlike: Users Flee, Sales Drop, Scramble For Relevance

• https://www.technocracy.news by JONATHAN VANIAN

A year ago, before Facebook had turned Meta, the social media company was sporting a market cap of $1 trillion, putting it in rarefied territory with a handful of U.S. technology giants.

Today the view looks much different. Meta has lost about two-thirds of its value since peaking in September 2021. The stock is trading at its lowest since January 2019 and is about to close out its third straight quarter of double-digit percentage losses. Only four stocks in the S&P 500 are having a worse year.

Facebook's business was built on network effects — users brought their friends and family members, who told their colleagues, who invited their buddies. Suddenly everyone was convening in one place. Advertisers followed, and the company's ensuing profits — and they were plentiful — provided the capital to recruit the best and brightest engineers to keep the cycle going.


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