I do think you have to admire how almost comically insane Zuckerberg is to do stuff like this. If Facebook was being run by someone normal what would happen is it would spend the next 20 years pissing away everything slowly as social media advertising became less and less relevant. But not with Zuckerberg at the helm. He will burn that place to the ground trying to find some way to remain important. Its surprising th…
Their advertising revenue grew 33% YoY last earnings call. They're literally making so much money they don't know what to do with it so they plow it into each new fad as to not miss out if this one happens to be a new billion user business. This is in addition to returning capital to shareholders via buybacks and dividends.
It’s a matter of time before the regulatory hammer falls on them and they’re hemmed in via civil courts due to damages. Many of the civil suits they’re losing are petty weak cases showing juries and judges literally hate meta. These are signs that their revenues are short term money grabs due to blindly chasing iRev at the cost of literally everything else.
Even hacking they only really follow through on if their large business credit extensions are at risk or chargebacks. Debit and direct funding isn’t pursued because they’re not loss liable - if it’s literal theft via debit cards, it’s not a priority. If it’s their own money via credit that’s refundable, they’re all hands on deck.
This will all blow back on them at some point and that point isn’t far aware. Courts, governments, banks, they’re all starting to notice the lawlessness and pure avarice. The consequences will severely impair their ads business, require them to undergo worse consent, oversight, and audit that waving an AI hand at won’t be sufficient, especially when the courts are concerned as judges are especially skeptical of AI solutions to court orders.
Their only out is to find another business model, which they’ve been trying to do without success since Facebook was first launched.