This isn't a stock projection, I have no idea how that will roll. Meta revenue and core products are stagnating and that meta accepts that. User growth, revenue growth, product growth all stagnating. So now there are few options: 1. Reduce costs and try to maximize earnings. Buy back shares etc. 2. Go all in metaverse or some other crazy idea, crazy risky strategy without any precedent in modern times. 3. Buy growth. Again very unlikely given regulation. It looks like meta has chosen option 2. I don't think they have too much of a runway. Zick has made a strategic mistake on thinking fb is his company and he can do whatever he wants. I think they will both so much money in the upcoming quarters that Zuckerberg will be under pressure to step back and someone else will come in, sell off metaverse assets and run the core appa like a media company, Ultimately going down the road of Yahoo. The other option might be something else happens like a pandemic which opens new doors for fb.
Meta is dying
Yup, totally agreed. The Facebook/Meta as we know it today won’t be around for much longer. They either succeed at the metaverse or they go the way of Yahoo.
Even option 2 takes at least a decade to generate meaningful revenue! They need to find another source of growth, if there is any!
Honestly think they need to go all-in on WhatsApp and Oculus now. Mainly WhatsApp offshoots like WhatsApp Pay.
I just don't see how they monetize Whatsapp. It's not very popular in us and the are alternatives. Also it's intrusive to have ads. Payments maybe but that's a skill set they don't have.
WhatsApp pay has started launching in India afaik. That's by far the biggest market for them, the whole country came to a halt when WhatsApp went down. https://www.google.com/amp/s/slate.com/technology/2021/10/whatsapp-facebook-instagram-outage-india-startups.amp is a decent source. There's 2 Billion active users on there, plus 1.3 billion on messenger. Those platforms are absolutely massive. https://www.statista.com/statistics/258749/most-popular-global-mobile-messenger-apps/ Basically, they've got the messenger world completely cornered on Android, and almost everywhere except North America.
India might look attractive from user standpoint but revenue is extremely tiny. For context Paytm the largest payments app in India is valued at 10b or so, so less than 5 percent of today's drop in fb value. It's less than a drop in the bucket and needs massive investments.
Love and expect hate for new technology but surprised to see it from tech folks. Did yall hate the internet and smart phone too at first or first timers? And the abandon the large and growing established businesses? What? Lol
What top tech companies around the first time of the internet are still top companies today? Very few…
A better idea: increase pip quota by 3x of all Meta employees and wish someone could pull a rabbit out of his hat. You never know.
I like how this has already been announced or telegraphed by Meta in past quarters and you’re acting like you just discovered something profound on your own. 1. They’ve already been doing massive share buybacks. 2. They’re hiring a ton of people for their metaverse bet which sent expenses through the roof. The obviously telegraphed strategy has been to invest in the metaverse to offset the stagnation in user growth. Like they even changed the company name. Do you really think nobody at meta has realized this?? They’re also pursuing opportunities to monetize better in Europe and Asia, which have a fraction of the ARPU of the US. Why do you think they announced last quarter they would hire 10k people in Europe? All of this info is in their quarterly earnings reports for you armchair ceos. Also Mark Zuckerberg has majority control of the company so he can’t be fired.
Why are you so butthurt. I never said I'm doing some super secret analysis. It's all there in the open. Yes Zuckerberg has voting rights, so did Larry and Sergey but they still stepped away.
Can Meta not get in to cloud business?
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Acquire tiktok lol
They will need Trump's help for that
Yeah, looks like the whole TikTok’s tie to China is in the talks within Biden admin.