It might seem that the Facebook social platform has been with us for an eternity, but in reality it has only been connecting us for 20 years. On February 4, 2004 Mark Zuckerberg, together with a group of friends, decided to launch a social network dedicated to the university world. The success was immediate: shortly thereafter it spread to other American universities and then had the worldwide diffusion we know, opening up the social media avalanche. Today Facebook is the most valuable company in the world, and social media has become rooted in our lives. The anniversary was marked by the first dividend.
New products
Young people have now abandoned Facebook in favor of new platforms. Perhaps this situation can be attributed to the constant succession of new products, with Meta acquiring such platforms in the past (think of Instagram and WhatsApp). Today the company continues to face strong competition from TikTok and other social networks. Or it could simply be our propensity to tire of a product easily. At the same time, it could be attributed to people’s increasingly distorted use of the platform.
Three billion users
If we analyze the number of monthly active users (MAUs), we see impressive growth. The first billion monthly active users were reached in the third quarter of 2012, and this figure currently exceeds 3 billion. Although the percentage growth of this increase has gradually reduced over time, the penetration still remains impressive.
Meta is born
Over time, the company has evolved and expanded its offering, until the launch of Meta at the Connect 2021 event, where CEO Mark Zuckerberg presented the new corporate brand that brings together different apps and technologies under one single umbrella.
Debut on the Nasdaq in 2012
The history of Meta Platforms is full of significant milestones. In 2009, the “Like” button was introduced, quickly becoming one of the company’s most iconic features. On May 17, 2012, Facebook debuted on the stock market with an initial public offering (IPO), valuing the company at over $104 billion, still representing the eighth largest IPO ever, and raising just over $16 billion. dollars. However, its first year on the stock market was not the best, with the stock recording a loss of around 38%, reaching peaks of over -58%, while the S&P 500 continued to grow with a +28%. That same year, Facebook acquired Instagram for $1 billion.
I like
In 2014, Facebook acquired WhatsApp for $19 billion. In 2015, the “Reactions” feature was introduced, allowing users to express different emotions than just “Like”. In 2016, Facebook launched Facebook Live, a feature that allows users to broadcast live video. In 2019, Facebook reached 2.4 billion monthly active users and announced plans to integrate Facebook, Instagram and WhatsApp messaging systems.
The scandal
In 2018, Facebook was involved in a scandal linked to the political consultancy firm Cambridge Analytica, which collected the data of millions of Facebook users without their consent. This scandal had a significant impact on the company’s business, generating a number of concerns related to privacy and user data management.
The stop to Libra
In 2020, Facebook’s revenue reached $70.7 billion, and the company announced plans to launch a cryptocurrency called Libra (project that encountered American resistance, with Mark Zuckerberg’s famous hearing in the House). In 2021, Facebook changed its name to Meta Platforms and announced ambitious plans to focus on building the metaverse. This move resulted in a staggering 70% loss for the company on the stock market as it tried to position itself for the expected boom in the metaverse industry, which was subsequently overshadowed in favor of artificial intelligence.
Family Apps
Meta Platforms’ corporate turnover is currently divided into two main lines: the Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp and other services, while RL covers hardware, software and content related to augmented and virtual reality for consumers. The Family of Apps represents the core of the company’s activities, including several successful social platforms. On the other hand, Reality Labs constitutes Meta’s bet in the field of augmented and virtual reality. Currently, this division is not yet capable of generating profitability, with revenue growth showing signs of stagnation and operating losses that have worsened over time. The challenge for Meta is now to find innovative ways to monetise and make the Reality Labs division profitable, as it continues to consolidate and develop its existing social platforms, as well as augment them (see the launch of Thread).
Operational efficiency
By increasing operational efficiency from 2022, Meta is narrowing the gap between R&D expenditure and net profit, as evidenced by operational metrics. This metric will remain central to investors’ radar.