Seedcamp - The Future of E-Commerce and the Companies out to Enable it
Last month, Meta lost $232Bn in market value after releasing its first-quarter earnings report, which displayed a sharp decline in profits. It is the single biggest one-day decline for a stock in U.S. history. The reasons for this drop are manifold: the rise of TikTok, plummeting daily active users, and inflation are partly to blame. Yet Zuckerberg also cited Apple’s ad-tracking changes, introduced a year ago, as costing Meta upwards of $10Bn this year alone.
It’s a seemingly small change: in an effort to respect user privacy, Apple users are now encouraged to choose whether or not they’d like to be tracked by the apps on their phone. But it has a huge effect on how companies run targeted ad campaigns. Meta criticised the move, arguing that SMBs will be most hurt by these changes, but Apple’s decision is clearly wreaking havoc on their investor earnings report. $10Bn dollars worth of havoc.
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