![]() ![]() Then AI saved the day (narratively speaking). In short, the core business is losing its growth prospects, and that’s quite different from a year or two ago.ĭuring the bottom there was a lot of negative talk around big tech as well. But they don’t have an answer for (B), which will also affect Insta. Now, for (A), Meta wisely acquire Instagram, which has a younger user demographic. That will slowly drain FB’s data input, making it less valuable to those who spend on advertising. Hardware manufacturers like Apple are making privacy a selling point. People are getting tired of having their entire personal lives x-rayed for free and then sold back to them as targeted ads. The younger generation doesn’t care much about FB, so active users will slowly decline, and so will ad revenue. There’s two things at play here: (A) Demographics. But that doesn’t mean it’s without challenges. At the moment, all eyes are on Elon and how he’s screwing up Twitter, so people aren’t paying much attention to FB. What has changed, my friend, is that Meta’s core business - MugShots - is running out of steam. The gods of PR are cruel and volatile, and this may soon turn again.īTW: I have no position in this company, long or short. Nothing substantial changed rather than the narrative. ![]() So what's left? A Verizon type company that will hang in there as long as it can and start paying dividends at some point. They are not a consumer electronics company, just not good at that.ĪI? Nope, not seeing that save the day either. Their VR vision has no legs, and I don't think it will ever take off. ![]() Also, I can't see how regulators allow them to grow their monopoly so these acquisitions will either be impossible or high-risk. In terms of new domains, they have never been great innovators, rather savvy acquirers, and I don't think this DNA will change soon. Even Instagram, the once cool platform, is now for the 25-30+. This includes every single group age, level of income, geography etc. According to their own statistics, close to 40% of the world population is a monthly active user. It's not a popular opinion, I know, but I really don't think that this company has any future left.ĭon't get me wrong, they will continue to generate cash-flow for a while, but their growth story is over. The point I'm making is read financial statements and listen to earnings calls to build your understanding of a company's foundation and follow the media to understand the waves that may come and go. That was about as easy and as safe of an investment that you will find. I'm not making this post to tell you how much it's worth but it was obviously not a $250B stock. Is META a $1 Trillion company? I don't know, it could arguably be valued anywhere from $600B to $1.2T. They have always been heavily investing in AI and they would tell you every earnings call. But if you were listening to their Earnings calls and reading their financial statements this whole time, not much has changed over the last few years for META. It went from Mark Zuckerberg is crazy and will burn his entire company and legacy to the ground chasing his worthless VR fantasy to META is investing billions of dollars in AI and that in the future AI will be everything. And not much has changed about the company except for the Media's hyperbolic narrative of META. Then the next 7 months it's gone from $90 to $280+. In the span of a year META's stock had gone from $370 down to $90. If your legitimate post is deleted by robots, we apologize you are welcome to comment in the Weekly Megathread or any other post's comments in the meantime. It fluctuates depending on current spam activity. We require a minimum account age to post as an anti-spam measure. Site-wide rules regarding spam and following U.S. Other low quality or self-promoting posts may be removed at the moderators' discretion. No personal attacks or derogatory language. No soliciting direct or personal messages to distribute tools or products through other channelsīe courteous. No posts about chat groups, discord links, etc. No promotion of commercial services (exception for high quality sponsored articles)Īccounts which only pump a single stock across Reddit will have posts removed as spam. Posts must be relevant to Value Investing No posts about cryptocurrency or blockchain. Visit our Subreddit Wiki for more info and links to get started! Visit our Archive to keep track of our goldmine of older posts! It's the value investing community on Reddit, and is for more advanced folk. This is a subreddit dedicated to Value Investing. ![]()
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