Receiving my morning New York Times email, today I was surprised to read an article about how social media companies are losing money, having to lay off employees and overall having a tough year. Meta, Snapchat, and Instagram are all on the decline, many know that due to changes Apple had made in its operations system, Meta had lost billions of dollars in their advertising revenue. On top of that, many young users are shifting and using other apps such as Gas and BeReal.
Twitter has been slow to gain revenue, especially with Elon Musk who had a $44 billion dollar deal, then backed out, but later decided he would close his deal (TBD this week). There is hope for Twitter if the Musk deal goes through since the company will not be publicly traded.
TikTok is one of the most vulnerable apps because a Chinese Company owns it and there has been speculation by U.S. regulators that have been trying to prove that the Chinese Government has been influencing TikTok. If the proof is found, TikTok will be considered a national security threat and that will be the end of the app.
Snapchat is still widely used and has plenty of users but similar to Meta, the Apple privacy changes have made target advertising on iPhones harder which has contributed to the loss of revenue.
Discussion: what is your opinion about these Apps? How do you have any ideas about how they could bounce back in revenue and popularity? Which ones will succeed, and which ones will go extinct?