Eli5 why Meta is doing so poorly since people are still using it and advertising on it.
In: 4
A business like Meta can have many users and still lose money.
On the plus side they have advertising revenue.
On the minus side they have all their costs such as salaries and all the computing resources necessary to provide Facebook, Whatsapp etc. etc.
It can easily be that the costs are bigger than the revenues, even when the revenues are large.
A business doesn’t even need to be losing money to be doing badly. The investors in the business expect a certain return on their investment…
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