On top of the disappointing outlook, Meta is contending with slowing global economic growth, competition from TikTok, concerns about massive spending on the Metaverse and the ever-present threat of regulation.The parent company of Facebook and Instagram beat estimates for quarterly revenue, which fell 4% to $27.7 billion in the third quarter ended September 30, from $29 billion last year.
CEO Mark Zuckerberg said its TikTok-like short-video product called Reels now numbers more than 140 billion plays across Facebook and Instagram, up 50% from six months ago.He believes Reels is gaining against rival TikTok with Reels being reshared more than 1 billion times a day. That includes an estimated $2.9 billion in charges in 2022 and 2023 related to “consolidating our office facilities footprint.”