Facebook plans to invest in Short-Form Video

Facebook focuses on Short-Form Video after a striking drop in stock price. To recover its pace, Facebook sights on video.

Facebook now intends to look for Short-Form videos. Zuckerberg discussed this plan with his Facebook employees. Facebook’s stock price plunged by 200 billion dollars.

Facebook now intends to look for a Short-Form video. Zuckerberg discussed this plan with his Facebook employees. Facebook’s stock price plunged by 200 billion dollars.

Facebook’s expenses exceeded its revenue. It also experienced a decline inactive users.

In 2021, half a million people stopped logging into Facebook. Investors got anxious after going through the details of Facebook’s quarterly report.

This caused the stock to go down. Loss of daily active users is due to TikTok, says Zuckerberg. Stating the company’s dull performance, Zuckerberg cites an “unprecedented level of competition” from TikTok. The company’s long-term vision for the future inflates Meta’s expenses.

Meta works on an investment that has yet to pay off. But, Meta brings less money from advertising. Apple’s App Tracking Transparency also eats up ad revenue. The feature restricts the ability of iPhone AAPs to track user data.

Thus, the targeting abilities of Facebook ads get reduced. It also leads to less involvement from users. This, in turn, reduces expenses from advertisers.

As they also don’t get a satisfactory return from the ad spending.

All these combine to add up in the historical plunge in stock price. Facebook envisions tackling the TikTok issue.

Also. it is unable to solve its advertising problem. To take over TikTok, Facebook will build Short-Form Video.

The company will focus now on Reels. In response to investors, Zuckerberg states:

“People have a lot of choices for how they want to spend their time, and apps like TikTok are growing. And this is why our focus on Reels is so important over the long term.”

Following Instagram, a video-sharing platform since 2020, Facebook also follows the line.