Meta's stock fell a record 26% on Thursday, wiping out more than $200 billion in market capitalization after disappointing earnings. Reddit's cofounder Alexis Ohanian wasn't shocked by the company's fall from grace, he told Bloomberg, as its digital advertising model isn't catching the eyes of ad buyers anymore.
Meta was one of several ad-heavy platforms that was hit hard by the Apple privacy updates that rolled out in May, which required apps to get users' permission before tracking activity for advertising uses. Because of this change, Ohanian said all of the "savviest marketers," have started ditching Facebook for advertising.
"The Facebook ad product — thanks to the Apple iOS changes — just doesn't cut the mustard anymore," he told Bloomberg in an interview Thursday.
Meta put the blame on Apple for its poor quarter, claiming in its earnings call that the iOS advertising changes could cost Facebook $10 billion in 2022.