Account verification for a fee only
The company probably found inspiration in Musk's social network Twitter, as it is introducing the same rule, namely charging for verified accounts. Twitter introduced a subscription service called Twitter Blue in December 2022. The new service from rival Meta will be called Meta Verified. For $11.99 per month on the web and $14.99 per month on iOS, users on Meta's platforms, Instagram and Facebook, will be able to get a blue verification label. The reason, according to the company, is to increase security and authenticity. Among the first countries to test this verification are Australia and New Zealand.
What does account verification actually mean?
The verification label signals authenticity, but it does not function as an endorsement by the social network, nor is it prioritized in any way. The purpose of the verification label is to ensure that the account you are following is not fictitious, but actually comes from the source it's supposed to. Such verification is most often used by celebrities, companies, and other famous accounts.
2023 will be the year of efficiency for Meta
This year, the company will mainly optimize. This is its main goal, also according to Zuckerberg. Meta reduced its headcount by 13 percent last year and will likely continue to lay off redundant people. It has also cut its spending as part of the Metaverse project, which was supposed to bring a revolution, but may help it in future developments.
Positive results
However, Meta excelled in the revenue area, beating analysts' expectations, posting $32.2 billion. It also saw positive results in the number of Facebook users, with the platform reaching 1.98 billion daily active users and 2.96 billion monthly active users as of September 2022.
Purchase of shares
Meta has bounced back from rock bottom this year after a disastrous 2022. Its troubles last year were due to a slowdown in online ad spending and rising losses at its Reality Labs division, which includes Metaverse projects. In early 2023, we could see the stock bounce off the bottom. The company's 23 percent jump in value was also caused by the publication of the results, which also boosted a favourable decision from the regulatory authorities on the same day the report was published. * A federal judge denied the FTC's request to block the takeover of Meta by virtual reality fitness game maker Within Limited.
The shares reached its highest value last year in early August, when it was worth $375 per share. Since then, they have fallen significantly.* Today, the price is around $170 per share. The consensus target price could return to $200, with some analysts predicting a move to $300 per share. [1] Growth will certainly be affected by how users accept the verification fee.
Meta Platforms' performance over the past 5 years. (Source: Investing)
Olivia Lacenova, an analyst at Wonderinterest Trading Ltd.
* Past performance is no guarantee of future results
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.
