Eli5 why Meta is doing so poorly since people are still using it and advertising on it.
In: 4
**All tech firms have been struggling**
When interest rates go up, it makes assets that are likely to grow more in the far future than they’ll grow in the short term less attractive. This applies to basically all tech firms, including Meta.
**Meta’s user base has stopped growing**
Since late 2020, Meta has reported essentially no growth in users and even a small decline in users and revenue more recently. When a firm has, for over a decade, grown relentlessly, this plateau and mild decline is a big shift. You can be one of the two major players in a duopoly (online advertising) and still be struggling to grow.
**Meta has acquired a terrible reputation**
People really don’t like Mark Zuckerberg, the concept of a metaverse, or Facebook, the company’s flagship product. The firm has not really been able to turn around what has been a cavalcade of bad press for, like, the last 5-6 years.
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