Facebook reports drop in revenue

Facebook reports drop in revenue for the first time

The social network reported its first-ever yearly decline in revenue for the second quarter

announcing a 1 percent drop to $28.8 billion, and predicted that growth in the third quarter could fall even more.

he overall profit for its parent company, Meta, fell 36 percent to $6.7 billion.

The Reality Labs division responsible for building Mark Zuckerberg’s metaverse dreams lost $2.8 billion in the quarter.

Zuckerberg said the company had seen “engagement trends” that were “stronger than we anticipated” on Facebook

thanks largely to an increase in the consumption of videos.

He said that Reels, the company’s short-form video format aimed at TikTok

monetizing faster than Stories did after the company copied that format from Snapchat several years ago.

but for now the company is prioritizing Reels and not making much money from them.