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Facebook Has an Innovation Problem


Last week’s dramatic drop in Facebook’s stock value has been the subject of a wide range of theories. An financial report issued by Facebook’s parent firm Meta revealed that user growth has slowed. TikTok, the addictive short-video app that has become Facebook’s most threatening rival in years, continues to attract young people, its most lucrative demographic.

Targeted digital advertisements, one of Facebook’s primary income generators, are being hampered by new privacy protections added to the iPhone last year; the firm estimates that Apple’s adjustments will cost it $10 billion in revenue in the next year alone. As for the metaverse, the virtual reality paradise that Facebook believes will be the next big thing online — but which, so yet, remains more virtual than reality, Meta said that it had spent $10 billion last year building up its new moniker.

Investors screamed in terror. Since last week, Meta’s stock worth has fallen by more than $250 billion. Only a few of publicly traded corporations have a market capitalization of more than $250 billion. This means that Facebook’s value has plummeted more than the combined value of all other publicly traded corporations save the biggest.

Mark Zuckerberg, who co-founded Facebook, has yet to come up with a solution to the firm’s most fundamental problem, which has plagued the company for more than a decade.

Facebook has a problem with new ideas: it can’t seem to do it. The corporation just doesn’t seem to know how to come up with new ideas that will be commercially successful. Many of its most popular features, such Instagram Stories, as well as its two most important products, Instagram and WhatsApp, were developed by third parties. When purchases didn’t work, they just copied their competitors’ products.

Facebook, on the other hand, is finding it more and more difficult to just buy and replicate other people’s ideas. As a result of Facebook’s enormous size and market dominance, regulators throughout the world have a hard time allowing the social network to acquire any more smaller rivals. In addition, the most popular Facebook applications are becoming increasingly disorganized and unfocused due to the inclusion of so many features that have been ripped off from other locations.

In the meanwhile, it’s easy to see why investors would be suspicious that Facebook is the firm that will develop the next big thing, whether the metaverse or whatever else is. It’s been a long time since Facebook produced something genuinely revolutionary.

How long has it been since you last spoke? Facebook’s first ten years were full with new ideas, despite the fact that Zuckerberg didn’t originate the concept of a social network. As far as milestones go, it’s hard to argue with 2006’s introduction of News Feed, the method for displaying updates from friends in chronological order. The News Feed transformed how people accessed the Internet.

If you were using an earlier social networking site like Myspace, you had to check in on each of your friends’ profiles to see what was going on with them. A real-time window into everyone’s social lives was opened up by News Feed by merging postings from your network into a sort of real-time digest. This was groundbreaking in human relations. Because of News Feed’s impact on both the positive and negative aspects of society, it is clear that it is an essential part of modern life. At least once, Facebook had the potential to alter the world with innovative ideas.