The Chicago Journal

Meta to make changes after stocks fall 17%

Meta announced its second-quarter results on Wednesday, revealing that the company had declined since its IPO.

The social media giant warns of sweeping changes ahead of 2023, starting with cost cutting.

The decision was taken to deal with the economic crisis which hit Meta’s main online advertising business.


Meta posted revenue of $27.7 billion for the three months ending September.

Revenues are down 4% year-over-year but still above Wall Street analysts’ expectations.

The company posted its first quarterly decline in the June quarter.

The company also reported a net income of nearly $4.4 billion, less than half the same period last year.

Meta revenues are below analyst forecasts.

Founder and CEO of Meta, Mark Zuckerberg, released a statement:

“We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”

Meta stocks

Shares of the company fell nearly 17% in after-hours trading on Wednesday after the earnings announcement.

Demand for online advertising has recently declined because of the rising inflation and recession fears.

Google and Snap have also seen their ad revenue decline.

Meanwhile, Meta CFO David Wehner said the average price per ad across the company’s platforms fell 18% in the quarter.

Read also: Stock market movement largely positive in October this year

App users

The growth of Meta users is slowing due to competitors like TikTok.

The company had 2.96 billion monthly active users on the Facebook app at the end of the quarter, up 2% year-over-year.

However, it declined from last year’s 6% growth in the same quarter.

Meta app’s daily active users grew 4% to 2.93 billion, compared to an 11% increase in 2021.

Zuckerberg noted that Instagram has more than 2 billion monthly active users, while WhatsApp has more than 2 billion.

The metaverse

The core challenges emerge when Meta invests billions of dollars in an ambitious effort to build the metaverse.

However, the metaverse is probably years away from perfection.

Wehner said the operational losses associated with the metaverse in 2023 would continue to increase year-after-year.

The Reality Labs unit lost nearly $3.7 billion in the September quarter.

So far this year, it has already cost Meta $9.4 billion.

Additionally, Reality Labs unit sales were down nearly 50% year-over-year in the September quarter.

Changes and reduction

Altimeter Capital last week wrote an open letter to make changes such as:

  • Reduce headcount expenses by at least 20%
  • Reduce annual expenditure by at least $5 billion
  • Limit investment in the metaverse to $5 billion per year

David Wehner said the company is making significant changes across the board for efficient operation.

Meanwhile, executives said Meta expects the headcount to be around 87,314 or less by the end of 2023, as reported in late September.

“We are holding some teams in terms of headcount, shrinking others, and investing headcount growth only in our highest priorities,” said Wehner.

Additionally, Wehner hinted that Meta might downsize its physical office footprint.

Read also: UK gives breakup order, Meta to comply and sell Giphy

Key investments

On the analyst call, Zuckerberg focused on three key investment areas for the coming years:

  • Meta’s AI discovery engine, which powers Reels and other recommendations
  • Ads and business messaging
  • Meta’s future vision for the metaverse

Earlier this month, Meta introduced its new virtual reality headset, the Meta Quest Pro.

The social media giant made its potential known to professional customers.

Meta expects quarterly revenue of between $30 billion and $32.5 billion for the last three months of 2022.

The forecast expects a decrease of 3.5% compared to the previous year.


Meta stock falls 17% as its quarterly profit is cut in half

UK gives breakup order, Meta to comply and sell Giphy


Facebook’s parent company Meta is expected to sell Giphy as the UK plans to force the tech giant to complete the service acquisition.

Giphy is an American online database that users use to find GIFs for comments, messages, chats, and text messages on social media.

The news

The announcement marks the first time regulators have stripped part of the tech giant since a global antitrust review probed the company’s dominance.

The decision was made on Tuesday.

The UK’s Competition and Markets Authority (CMA) decision sparked a long battle with Meta over the deal’s impact on competitors’ access to GIFs and the digital advertising market.

Meta went to court to defend the deal, but British officials prevailed over the summer.

The court upheld the CMA’s finding that the acquisition of Giphy could reduce competition by eliminating a competitor in online advertising.

The acquisition also limits third-party access to Giphy’s GIF library.

Meta response

Facebook’s parent company issued a statement on Tuesday confirming that it would accept the UK’s decision as “the final word on the matter.”

A meta spokesperson clarified the statement:

“We will work closely with the CMA on divesting GIPHY.”

“We are grateful to the GIPHY team during this uncertain time for their business, and wish them every success.”

While this resulted in a loss, Meta said it would continue to explore acquisitions.


Over the years, critics have accused larger tech companies of seeking “killer acquisitions” from smaller companies.

Critics say the acquisitions could undermine the dominance of the biggest names, reducing potential competition in the industry.

In the United States, the “buy-or-bury” strategy is at the center of a federal lawsuit that forces Meta to split WhatsApp and Instagram.

The attempted Federal Trade Commission violation could lead to a trial in 2024.

Additionally, the FTC filed a lawsuit to block the social media giant’s acquisition of Within Unlimited, a virtual reality technology company.

They argued that the deal could give Meta more power to build a “virtual reality empire.”

Meta now faces both lawsuits.


Meta says it will sell Giphy to comply with UK breakup order

Twitter and Instagram restrict Kanye West over antisemitic posts

Kanye West has found himself in several controversies in the past, but his latest posts led to him being banned from two major social media platforms.

On Sunday, the rapper shared anti-Jewish posts on Twitter and Instagram, violating the guidelines on both platforms.

Ye’s posts

In his posts, Ye made bizarre allegations against fellow rapper Sean “Diddy” Combs, implying that Diddy was controlled by Jews.

Ye also tweeted screenshots of his private texts with the rapper, in which Diddy tried to tell him about the “White Lives Matter” t-shirts that were making waves online.

Kanye West’s posts have gained traction online, with many condemning his content.

The American Jewish Committee called West’s comments “dangerous.”

“The control theme seeks to falsely portray Jews as secret puppet masters ruling over others,” they shared on Twitter.

“[Kanye West] needs to learn that words matter.”


Ye’s posts were later removed from Instagram due to violating the platform’s policies.

His account was also restricted.

The rapper then took to Twitter to call Meta CEO Mark Zuckerberg, who runs Facebook and Instagram.

“Look at this Mark,” he tweeted with a picture of himself singing karaoke with Zuckerberg.

“How you gone [sic] kick me off Instagram. You used to be my n***a.”

More anti-Semitism from Ye followed later on Twitter, with him writing:

“I’m a bit sleepy tonight but when I wake up I’m going death con three [sic] on Jewish people.”

“The funny thing is I actually can’t be antisemitic because black people are actually Jew,” he continued in another post.

“Also you guys have toyed with me and tried to black ball anyone whoever opposes your agenda.”

The tweet remained on Twitter before being replaced by an automated message stating: “This tweet violated the Twitter rules.”

A Twitter spokesperson later confirmed that the rapper’s account had been restricted for violating community policies.

The White Lives Matter controversy

On October 3, Kanye West wore a “White Lives Matter” T-shirt when he launched his clothing line in Paris.

The shirt has received a lot of criticism.

Diddy posted a video on Instagram and other social media platforms to talk about the controversy.

“Right now, all America has planned for us is poverty, incarceration, and death,” Diddy said in the clip.

“So, before I can get to any other lives matter – which all lives matter, you know what I’m saying – that ‘Black Lives Matter,’ don’t play with it.”

“Don’t wear the shirt, don’t buy the shirt, don’t play with the shirt. It’s not a joke.”

It was this video that led Ye to accuse Diddy of being controlled by Jews.


Kanye West’s Twitter and Instagram accounts have been locked over bizarre posts about Jewish people

Twitter, Instagram block Kanye West over anti-Semitic posts

Controversial influencer Andrew Tate shuts down his program Hustlers University

Andrew Tate, a popular internet figure, recently faced a backlash that ultimately led to the termination of his affiliate program, Hustler University.

Hustlers University

Hustlers University is an online course developed by Tate that promises to bring people financial freedom.

The official site appeals to the naive with videos of exotic cars and yachts filled with beautiful women.

Hustlers University is designed as an online educational program with no institutional accreditation, where members pay monthly fees for cryptocurrency, e-commerce, and stock market consulting.

The marketing program has been a major contributor to Andrew Tate’s viral success, encouraging members to recommend others and share videos of him for a commission.

In June, Tate said the course had more than 80,000 members, but outlets like Insider couldn’t independently verify the number.

Critics have criticized Hustlers University and called it a scam.

After banning Tate from Facebook, Instagram and Tiktok last week, the program was shut down.

The Guardian conducted an investigation and suggested that Hustlers University stop this program as it has no future.

The closure of Hustlers University means that Tate’s revenue will suffer a major loss, while membership stats jumped from 127,000 to 109,000 in the past two weeks.

A post on the program’s community forum reassured subscribers that an exciting update is coming, presumably Hustlers University 3.0.

Who is Andrew Tate?

Andrew Tate is a social media influencer and former professional kickboxer who has been around online for a few months.

He joined Big Brother in 2016 but was removed from the program after a video surfaced showing him allegedly assaulting a woman.

According to the BBC, Tate called the video a “total lie” to make it look ugly and said it had been edited.

Ban on social media

Tate’s popularity stems from the ideologies he shared, most of which are misogynistic. The content includes advice for young men, spewing out misogynistic and violent comments about women.

As a result, the influencer was banned on several platforms.

A spokesperson for Meta, the parent company of Facebook and Instagram, said his accounts were suspended because “misogyny is a hateful ideology that is not tolerated on TikTok.”

They also said they would investigate its contents.

The spokesperson also said that Tate violated the policy relating to dangerous organizations and individuals, citing the policy on hate speech.

TikTok released a statement stating:

“We continually look to strengthen our policies and enforcement strategies, including more safeguards to our recommendation system, as part of our work to keep TikTok a safe and inclusive space for our community.”


Andrew Tate’s Hustler University affiliate program has been shut down

Andrew Tate closed his Hustlers University affiliate marketing program that helped him go viral a day after he was banned from Meta and TikTok

Misogynistic Influencer Andrew Tate gets banned from Facebook, Instagram, TikTok for violating their policies