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Lower revenue than Q2 of 2021 and higher expenses. They're on track to have significantly lower net income this year than last year. Au revoir, Facebook.
Au revoir? Don't think dethroning the lizard king is going to be that easy.
That said I laughed out loud to this. I’m not a FB fan because of all the dark patterns.
Edit: Added “only”
On the metaverse question: does anyone seriously believe Facebook can innovate, let alone build a new industry?
They have the cash to make the hardware, the capital-intensive side, work. On the actual product experience I'm unconvinced. But all Meta needs to do is be competitive in the space not win it. If they're in the top-3, that's still a huge revenue generator.
Like I said before, the premature death of Meta Platforms constantly screamed here and even orchestrated and parroted by the mainstream media, has been greatly exaggerated. Still profitable in a market downturn even with rising inflation fears causing everyone else in big tech to slightly miss expectations. DAUs, MAUs up again and they will be here for another 10+ years like it or not. It's business as usual folks.
Lower revenue than Q2 of 2021 and higher expenses. They're on track to have significantly lower net income this year than last year. Au revoir, Facebook.
So assuming they're just an online entertainment company, Netflix is higher, Twitter is about the same, Disney is probably on the up, Activision and EA have similar downward trends, so I don't know, might still be too noisy to tell.
Personally if I were a betting man I'd be shorting them hard. People are quickly souring on the entire social media industry. There's no reason it had to stay around
Earlier quoted context omitted.
They have the cash to make the hardware, the capital-intensive side, work. On the actual product experience I'm unconvinced. But all Meta needs to do is be competitive in the space not win it. If they're in the top-3, that's still a huge revenue generator.
They changed their name to Meta... They need to win it or become a footnote. The market won't accept them going from a world leader to an also-ran.
Lower revenue than Q2 of 2021 and higher expenses. They're on track to have significantly lower net income this year than last year. Au revoir, Facebook.
> Au revoir, Facebook. Modern day Linux on the Desktop.
The first thing to know about Facebook is that they view the social media landscape in two dimensions: format and audience size. Format here means text -> audio -> video. So if you look at the match up between audience of 1:1,000,000 and text you'll find Twitter, for example.
This has served FB quite well but what happens after video, if anything? Well, the company believes the next two steps are VR then AR. In this context, the Oculus acquisition makes more sense.
Meta is ultimately (IMHO) suffering from a problem similar to what Microsoft had in 2000: it didn't know where to go and lacked leadership and direction. With MS and Netscape, MS really believed they were doing normal MS things until the governmen tintervened and they didn't really know what to do.
There have been three big initiatives from the top at FB that IMHO didn't and still don't make sense:
1. In respons eto the misinformation aroundd and subsequent to the 2016 election, FB decided to try and police truth with "fact checking". This is a huge mistake. Nobody is going to be happy. There will always be a line where people disagree. Even in clear cases of false information, as we've seen you're going to still upset a lot of people. This was always a losing strategy;
2. They decided to merge WhatsApp, FB Messenger and IG Direct to try and "win" the US messaging market against iMessage. Years before this there was no concerted effort to merge FB, IG and WA accounts. When asked, Mark said they were differnt ecosystems with different permissions. It didn't make sense to try and unify them. Well that fell by the wayside and angered users in the process; and
3. The Metaverse. Much like VR in general, I don't htink is ever going to be mainstream. It doesn't solve any problem. AR might if we can ever get AR glasses to work but that's a pretty big if. For now, people love their phones. They don't love VR headsets and (again, IMHO) they never will.
So now Meta stock has lost half its value. The best performers will be looking at the door. An effort to weed out low performers is going to make things incredibly toxic. It won't weed out bottom performers. It'll weed out those who are the worst at politics because that's what employee calibration is.
None of this is address the real problem: leadership. There is no top-level direction (that makes sense). Who you should be looking to lose is 50% of the people from directors right up to Mark's level. ICs and "leaf" managers don't decide company strategy. Direct this at those who do.
https://www.cnbc.com/2022/07/27/facebook-parent-meta-earning... - Earnings: $2.46 per share vs. $2.59 per share expected, according to Refinitiv - Revenue: $28.82 billion vs. $28.94 billion expected, according to Refinitiv - Daily Active Users (DAUs): 1.97 billion vs 1.96 billion expected, according to StreetAccount - Monthly Active Users (MAUs): 2.93 vs 2.94 billion expected, according to StreetAccount - Average Rev…
Okay at the danger of outing myself as financially incompetent at big company level, the difference seems neglible?
Earlier quoted context omitted.
They have the cash to make the hardware, the capital-intensive side, work. On the actual product experience I'm unconvinced. But all Meta needs to do is be competitive in the space not win it. If they're in the top-3, that's still a huge revenue generator.
They changed their name to Meta... They need to win it or become a footnote. The market won't accept them going from a world leader to an also-ran.
And not being a world leader won't tank their stock or somehow erase the company. There's still real earnings/value to be had in VR and they're early in the space. As long as the space as a whole is successful and Meta stays a part of it, they'll continue to receive revenue which will continue to drive stock growth. They might not forever stay a behemoth, but they're not going anywhere any time soon.
Lower revenue than Q2 of 2021 and higher expenses. They're on track to have significantly lower net income this year than last year. Au revoir, Facebook.