Meta Lost 20 Million Users Last Quarter — Blames Iran and Russia

Meta is pouring billions more into AI this year, but here’s the thing — its user base is shrinking. During Wednesday’s earnings call, the company revealed that “Family daily active people” — the combined daily users across Facebook, Instagram, WhatsApp, and Messenger — dropped by 20 million compared to the previous quarter.

That’s a notable dip for a company that’s been riding high on user growth for years. Meta’s explanation? Internet disruptions in Iran and restrictions on WhatsApp access in Russia. Take that with a grain of salt. By lumping all those platforms together, Meta can make the numbers look less alarming than they might be if you looked at individual apps.

I’ve seen this dance before. When a company bundles metrics, it’s usually to smooth over cracks in individual products. Facebook’s core platform has been losing younger users for a while now, and Instagram’s growth isn’t what it used to be. Blaming geopolitical issues is convenient, but it doesn’t fully explain why people are walking away.

Meanwhile, Meta is doubling down on AI infrastructure. The company plans to spend even more this year on data centers, chips, and research — billions more, in fact. That’s a bold bet when your user base is contracting. AI might be the future, but it’s not going to bring back users who are bored with the same old feed.

I’m not saying Meta is doomed. WhatsApp and Messenger still have massive reach, especially in markets like India and Brazil. But the narrative of endless growth is starting to fray. If this trend continues, investors might start asking harder questions about where all that AI money is actually going.

For now, Meta is betting that AI will unlock new revenue streams — better ad targeting, more engaging content, maybe even the metaverse again. But losing 20 million users in a single quarter is a warning sign that money alone can’t fix.