In 2023, analysts expect its revenue and net income to rise 5% and 11%, respectively, as it stabilizes its advertising business and implements more aggressive cost-cutting measures.Īs for TikTok, Meta believes it can catch up with Reels, a similar short video platform that was launched on Instagram in 2020 and Facebook in 2021. Meta's revenue declined 1% to $166.6 billion in 2022, compared to its 37% growth in 2021, as its net income plunged 41% to $23.2 billion. But like Snap, its growth also stalled out as it grappled with Apple's iOS changes, competition from TikTok, and the broader slowdown of the advertising sector.īut unlike Snap, Meta continued to pour billions of dollars into its unprofitable Reality Labs business, which houses its virtual and augmented reality products, as the growth of its core advertising business cooled off. Meta's family of apps - Facebook, Messenger, Instagram, and WhatsApp - collectively served 3.74 billion people monthly at the end of 2022. Therefore, any good news - like a ban on TikTok - might lift its stock. That slowdown is disappointing, but Snap still served 375 million daily active users at the end of 2022, it continues to gain new users, and its stock trades at just 4 times this year's sales. In 2023, analysts expect its revenue to rise just 2% as it narrows its net loss to $1.1 billion. Its revenue only rose 12% to $4.6 billion in 2022, compared to its 64% growth in 2021, as its net loss nearly tripled to $1.4 billion. The intense competition, along with Apple's privacy update on iOS and macro headwinds for the advertising sector, caused Snap's growth to cool off.
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