Meta plunges as Facebook users stall, forecast falls short – Los Angeles Times

Facebook parent Meta Platforms Inc. said user additions stalled in the fourth quarter and gave a disappointing forecast for the current period, raising concerns about the company’s future growth. Its shares plunged as much as 24% in extended trading.Facebook reported 2.91 billion monthly users in the fourth quarter, representing no growth from the third quarter. The social network is feeling the effects of increased competition for users’ time and a shift in interest to video, where advertising isn’t as lucrative.Meta said revenue in the current quarter would be $27 billion to $29 billion, compared with analysts’ average estimate of $30.25 billion.The misses come at a crucial juncture for the Menlo Park, Calif., company, which is fighting regulatory battles on multiple fronts and also trying to justify a costly shift in corporate strategy to bet on the so-called metaverse, the vision for an immersive internet lately championed by Chief Executive Mark Zuckerberg. For years, it seemed like Facebook would never stop growing. Now young users — the future consumers of its advertising — are choosing platforms such as TikTok and YouTube for entertainment and community instead.The company, which changed its name to Meta last year to indicate its future direction, will…
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