paypal also had a really bad dip (again) for really no good reason. everyone i know in the US uses paypal to split payments and to send money to others.
a lot of people i know in the US have moved on from paypal and use venmo or other apps now
Meta shares drop 20% on Q4 earnings miss, weak outlook
161–170 of 556 posts
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#162Facebook’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…
> Facebook is betting the farm on the metaverse stuff and it's an odd bet.
There’s a whole bunch of geriatric millennials out there remembering what happened to second life. With the pandemic letting up the last thing people are going to want to do is live in some virtual world. Fresh air is the new black.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#163Facebook’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…
They don’t have a very diversified revenue stream despite trying various side businesses. Google and Microsoft have had the same business model forever .
> Google and Microsoft have had the same business model forever .
Microsoft has Xbox, Office, Azure, etc.
Google has Android, Google Workplace, GCP, etc.
When you diversify your income streams you add more. It doesn't mean you get rid of your breadwinner.
Facebook's main model seems to becoming illegal and/or not viable via a tech perspective.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#164The vitriol on HN for FB is something else. The earnings for this company are truly staggering. They made 11$/user. Their earnings were up 34% year-over-year – on a base of 29B dollars. They made 10B more this year than they did last year, and the comments in here are all about, "boy Apple fucked them, and Meta suxor!" You people are nuts. While I don't love FB as an entity, as a business they are making fucking bank…
> The vitriol on HN for FB is something else.
> The earnings for this company are truly staggering. ...
> You people are nuts.
> While I don't love FB as an entity, as a business they are making fucking bank. ...
Purdue Pharmaceuticals made a lot of money, too.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#165Time to buy?
Just look at the reactions in this entire thread, in virtual reality they hate Meta so much and it's all over for them. But in reality:
It is a screaming buy signal.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#166Earlier quoted context omitted.
It's not really plausible that the market can predict Facebook's earnings to within 5% and that such a small miss would cause a rational investor to value Facebook 20% lower. This seems more like a symptom of the market being generally skittish, with a small side of "expected" earnings actually being a low-biased estimate, so it's more like a 10% miss.
it's always like this with earnings reports. pennies can make the difference between 10% moves
"I see a speck of dust on the tire. Minus $100."
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#167This explains the shift to Meta. The current company is basically dying, and so they are going to bet the house on something new. Apple really did a number on them by restricting the data they can collect
Facebook is dying slowly in the developed world, that is true. However it is still growing in emerging markets. And most importantly: FB is still generating tons of cash to fund the other assets. WhatsApp has basically zero monetization right now but billions of users. Huge potential cash cow. Instagram still has a ton of potential for further optimized monetization. Think fully embedded 1-click buying for things lik…
> if executed right
I think this right there is the biggest issue for the companies that sell consumer data. Google has had so many golden eggs, office365 before Microsoft, the cloud infrastructure before AWS and so on, and they keep fumbling the ball because their organisation is geared toward a very different form of sales.
The fact that Instagram didn’t become an Etsy styled platform for artists when it was the main platform for sharing semi-professional “hobby” work should tell you everything you need to know about how little Facebook understands markets that aren’t selling privacy data. Because even if they opened up now that ship has sailed as less and less people who produce things rely on Instagram as a platform because the younger audiences aren’t there.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#168Here are the results that caused this: - Earnings per share: $3.67 vs $3.84 expected - Revenue: $33.67 billion vs $33.4 billion expected Facebook also missed estimates with user numbers. - Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected - Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected - Average Revenue per User (ARPU): $11.57 vs $11.38 expected Future guidance was the biggest miss…
It's not really plausible that the market can predict Facebook's earnings to within 5% and that such a small miss would cause a rational investor to value Facebook 20% lower. This seems more like a symptom of the market being generally skittish, with a small side of "expected" earnings actually being a low-biased estimate, so it's more like a 10% miss.
There are some cascading effect if you look at stocks of other major companies (AMZN, MSFT). I would guess an algorithm balanced these holdings.
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#169This 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 all sizes turned to us to help them reach people. But there are two things that I want to call out that are having an impact on our business.
The first is competition. People have a lot of choices for how they want to spend their time and apps like TikTok are growing very quickly. And this is why our focus on Reels is so important over the long-term. As is our work to make sure our apps are the best services out there for young adults, which I spoke about on our last call.
The second area, and related to this, is that we're in the middle of a transition on our own services towards short-form video like Reels. So as more activity shifts towards this medium, we're replacing some time in News Feed and other higher monetizing surfaces. So as a result of both competition and this shift to short-form video as well as our focus on serving young adults over optimizing overall engagement, we're going to continue to see pressure on impression growth in the near term. Now I'm confident that leaning harder into these trends is the right short-term tradeoff to make in order to get long-term gains. We've made these types of transitions before with mobile feed and Stories, where we took on headwinds in the near-term to align with important trends over the long term. And while video has historically been slower to monetize, we believe that over time short-form video is going to monetize more like feed or Stories than like Watch – so I'm optimistic that we'll get to where we need to be with Reels too."
Re: Meta shares drop 20% on Q4 earnings miss, weak outlook
#170Earlier quoted context omitted.
I've been using a roommate's Quest 2 for a few days. A few years ago I was using an OG Oculus. The Quest 2 is so much staggeringly better in every way. So much so that I can see a future where people are spending hours in VR games rather than hours playing games on a monitor. Yes, there are issues to work out with the headbands, weight, general FPS and battery life, but I finally _get_ it. The amount of badassery you…
Wow what's better? As an Oculus owner I dismissed the 2 as just aesthetic. Can it run Alyx natively? On the Oculus 1 it requires a PC and cable.
Sorry, I should have been more clear about Alyx - in both situations I'm running Alyx on a PC, and using the headset tethered.
That being said, Quest 2 uses a USB-C cable that is quite a bit lighter and easier to manage than the Oculus' HDMI cable.