Meta continues to increase the number of users across all platforms, but its growth rate is likely to remain very moderate.
Currently, Facebook has 2.96 billion monthly active users, which is equivalent to 37% of the world's population of 8 billion people. If you subtract 1.4 billion people in China, where Facebook is unlikely to penetrate, it means that nearly half of the world's population already uses Facebook.
According to Internet World Stats, Facebook has penetrated close to 80% of the population in Latin America and North America. Europe and Oceania also have penetration rates close to 65%. These countries have far higher consumption power compared to other countries in the world, but average advertising revenue (ARPU) per user has declined compared to the previous year.
Due to the rise of TikTok, users in these countries are spending a lot of time on TikTok instead of Facebook. Also, the younger generation is reluctant to open Facebook accounts and is considered more “old-fashioned.”
If the company doesn't find a way to improve the user experience and attract the younger generation, the platform will eventually lose its ability to attract advertisers. Meta also doesn't seem to be the cash cow it is today.
Nonetheless, Meta still has opportunities for growth. After this, I would like to take a look at the growth potential that this company has.