Facebook's parent firm Meta, on Wednesday, posted a rare profit decline as the company lost many users worldwide.
Just like Netflix, Meta also got a taste of disappointing results as its $10.3-billion quarterly profit and daily user growth fell short of expectations.
The Facebook platform reported losing roughly one million daily users globally between the last two quarters of 2021.
On his part, CFO Dave Weiner told analysts that user growth was impacted by "headwinds" including disproportionate growth in the Asia-Pacific during the pandemic.
"In addition to these factors, we believe competitive services are negatively impacting growth, particularly with younger audiences," Weiner added.
The company's executives have repeatedly highlighted the competition with TikTok while they face numerous probes and complaints of abuse of dominance.
Analysts expected 1.95 billion daily active users on Facebook, but Meta reported 1.93 billion. Meta's share price was down about 22% to roughly $250 at 0010 GMT in after-hours trade.
In the same vein, the company said the rules imposed by Apple last year on ad targeting had a negative impact on its financial results in the fourth quarter.
"Meta may only generate single-digit revenue growth. And that's before any further legal and regulatory developments and actions," Third Bridge analyst Scott Kessler said.
"It seems that many are re-evaluating in real-time," he added.
As of December 31, 2021, 2.8 billion people were using one of its four platforms and messenger services at least once a day, and 3.6 billion at least once a month.
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