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Meta experiences its first decline in sales

Meta has experienced its first decline in sales.

The parent company of WhatsApp, Facebook and Instagram has endured its first fall in advertising revenue in the second financial quarter of 2022 as their total revenue dropped by one per cent to $28.8 billion. Despite this, the company did not lose users.

Analysts believe that their growth may have plateaued after many years of growth. Their competitors, such as TikTok have been chipping away at their market dominance. The popular video-sharing app recently hit the 3 billion download landmark, becoming the first app not owned and operated by Meta to reach this milestone.

Meta - who currently hold 20 per cent of the international advertisement market - told shareholders about the likelihood of this happening again in the future as the pandemic prompted a rise in demand for online sales but that is slowing off. Other concerns include inflation and the war in Ukraine.

The company’s founder, Mark Zuckerberg remarked the company would be “steadily” decreasing the level it recruits at in response to the shrink in revenue.

The 37-year-old billionaire told a company Q A last month: "If I had to bet, I'd say that this might be one of the worst downturns that we've seen in recent history.”

They are not the only tech company to experience a slowdown in revenue. Both Twitter and Alphabet Inc - the parent company of Google and YouTube - reported feeling the effects of the industry.

Angelino Zino, a senior equity analyst at CFRA agency told BBC News :"When you look at the ad space right now...growth is deteriorating at a very fast pace, much faster than most people had anticipated.

Instagram recently unveiled plans to pause their pivot to video and recommended content after mass outpouring of complaints from users, including its most famous faces like Kim Kardashian, Kylie Jenner and Chrissy Teigen.

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