In this video, I will be talking about how Meta Platforms (META -0.71%) could take on TikTok with one simple business move. It is something YouTube Gaming and Twitch have been doing for a while now. You can find the video below but here are some highlights.
- The company recently reported revenue of $33.67 billion, up 20% year over year. But the focus was on Facebook's daily active users (DAUs) being down for the first time, ending the quarter with 1.92 billion DAUs, down from 1.93 billion in the previous quarter.
- But family monthly active people (MAP), which includes Facebook, Instagram, Messenger, and WhatsApp, reached 3.59 billion, up from 3.58 billion in the previous quarter.
- During the call, management repeated various times that it is competing with the likes of TikTok, which has grown extremely fast and has definitely hurt Facebook's business.
- This is what Facebook could do to stop TikTok from becoming even bigger and preventing a bigger decline in Facebook users -- signing creators to create content exclusively on its platforms.
- Alphabet's YouTube Gaming has done it. Amazon's Twitch is doing it, and so is Facebook Gaming.
- If CEO Mark Zuckerberg wants Gen Z to engage more with Instagram and maybe even virtual worlds through Oculus Quest, I believe this is the way to do it. Sign the talent and get the fans, which increases engagement, which will lead to higher monetization.
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*Stock prices used were the closing prices of Feb. 7, 2022. The video was published on Feb. 8, 2022.