I wrote this in another FB thread but they need to own e-commerce vertical: Stripe and Shopify. Others here mentioned opening up their data centers too.
I think that’s a good idea. Shopify would integrate well with Instagram.
Meta shares drop 20% on Q4 earnings miss, weak outlook
231–240 of 556 posts
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#232Facebook’s core business model appears to be in decline. They don’t have a very diversified revenue stream despite trying various side businesses. This is the market worried that Facebook’s best days are behind it. Facebook is betting the farm on the metaverse stuff but without meaningful financial results that’s not going to placate market concerns over what looks like a downhill future for the core businesses. Face…
I don't get metaverse - they seem to be throwing lots of money and people at it, and hyping it up like it's the future. But from what I've seen so far they've just built VRChat, but worse. It's been done before by other people, it's not a new thing at all (Second Life released almost 20 years ago). This isn't a project that benefits from any of Facebooks strengths - game development companies are much better position…
You are absolutely right. Looking back at the days of Mafia Wars and Farmville. For these games social was a core aspect of their success. Now Roblox, Minecraft, and Fifa have incorporated similar features already. In 2022 it's not that hard anymore. So, what would FB's moat be? How large is the overlap between FB's current customers and new Metaverse customers?
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#233Earlier quoted context omitted.
People spend more time on an app where they feel comfortable. If FB did nothing to clean up feeds, it would probably drive away both those eyeballs and the advertisers who don't necessarily want their brand to be displayed next to unfiltered user-generated content.
don't follow content that makes you uncomfortable. seems like an easy fix any user can implement on their own.
Thing about Facebook is, it pushes stuff at you. Not stuff you'll like, stuff you'll _engage_ with. Last time I logged in it offered me a weird anti-trans Economist article. Life is too short to invite a robot to irritate you; that's why I don't use Facebook anymore.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#234This is from Mark Zuckerberg's post. I think it's a decent explanation of their performance. Historically Facebook always made these longer-term bets and they've typically paid off. "Before I get to that, I want to briefly touch on our Q4 results, which I know Sheryl and Dave are going to go deeper on. I'm proud of the work our teams did here. We shipped products, our community continued to grow, and businesses of al…
So in other words TikTok has made them have to pause and switch to prioritize Reels (which are in every way worse than TikTok BTW) and that means less eyeballs on ads.
Honestly Facebook at this point is entirely unusable. My feed is full of shit I don’t want (and I block ads at DNS level so I can’t even imagine what it looks like for most people): Reels, half baked “memes” that are just really random thoughts from people I don’t know that someone I do know shared, and the rest I can’t even classify but it’s utter garbage. The only useful piece of FB was Marketplace but they managed to cram it so full of paid content and the rest is clearly online stores pretending to be local sellers that are this point I have zero use for that as well. I am sure they’ll continue to be printing money with their “generate outrage => show ads” core loop but how long will that actually last?
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#235This is from Mark Zuckerberg's post. I think it's a decent explanation of their performance. Historically Facebook always made these longer-term bets and they've typically paid off. "Before I get to that, I want to briefly touch on our Q4 results, which I know Sheryl and Dave are going to go deeper on. I'm proud of the work our teams did here. We shipped products, our community continued to grow, and businesses of al…
Well all of those point seem to sum up to: "We're getting beat by Tiktok and we're going to catch up by being more like tiktok" That doesn't exactly exude confidence.
I don’t think Facebook will catch up to TikTok with Reels. I do think that it’s quite probably that TikTok will fuck yo their platform before they take down FB.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#236Earlier quoted context omitted.
It's so confusing to me see headlines calling this a "huge earnings miss". Revenue was greater than expected, as was ARPU. I get that the users are under, but this seems pretty far from a huge miss, no?
Feel free to do a deep dive on the meaning and nature of earnings estimates, and you'll find it's mostly just a service that exists because it gives the appearance of legitimacy to various financial institutions. Earnings estimates do not come down from God and there's no one single earnings estimate either, different sites and sources will report different estimates. Typically it's just the average or the median of…
This is what I've never understood. These estimates are just that, estimates. They are guesses, potentially educated guesses based on some data, but guesses/hopes/prayers none the less.
It's like sports teams and all of the talking heads giving their opinions on the upcoming matches. In sports, it's called betting. But in business, it's called investing. It's the same thing, only one is more widely accepted an legal.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#237The data center infrastructure that Facebook (Meta) has is probably in the top 5 in this world (behind only Amazon, Microsoft, Google). They might want to become a cloud infrastructure provider for some side money and buy themselves some time to figure out this Metaverse fantasy :) Hey, AWS started because Amazon wanted to lease out their spare infrastructure capacity.
This would be an interesting but perilous pivot... trying to get into cloud infra at this point seems like an insane idea. What would even be the attraction for company to want to run on FB cloud vs one of the established players that now have a decade plus of real world operations experience from running 3rd party customer workloads? If we are spitballing ideas, If I am Zuck I'm looking at figuring out how to buy Va…
[deleted]
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#238Earlier quoted context omitted.
Well all of those point seem to sum up to: "We're getting beat by Tiktok and we're going to catch up by being more like tiktok" That doesn't exactly exude confidence.
Why not? It worked when they copied Snapchat's stories feature.
Because so far their content is full of obviously fake poor quality videos and their selection algorithm for those is basically an RNG.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#239Maybe they'll try launching a Facebook phone that tries to capture Apple's market and it'll fail miserably again. Never underestimate the blue message bubble y'all. That's real leverage.
>Never underestimate the blue message bubble y'all. That's real leverage.
Only in north America. Like it or not, there is faaarrrrrr more future money to be made with the 3B ish people of china+india than the 0.4B americans.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#240This is from Mark Zuckerberg's post. I think it's a decent explanation of their performance. Historically Facebook always made these longer-term bets and they've typically paid off. "Before I get to that, I want to briefly touch on our Q4 results, which I know Sheryl and Dave are going to go deeper on. I'm proud of the work our teams did here. We shipped products, our community continued to grow, and businesses of al…
Well all of those point seem to sum up to: "We're getting beat by Tiktok and we're going to catch up by being more like tiktok" That doesn't exactly exude confidence.
BoomerTok