Meta stock fell about 15% after they reported their earnings at market close. I think the reason for the fall is the tiktok ban and conditions around it. I think the big guys know tiktok is gonna be swooped up by some American company. It would be stupid not to. They make money, people like it and they have been the only real competition to fb's monopoly. When tiktok does get rebranded as american, there are going to be even more Americans open to the idea of using it. They can milk it like fb milks all their products. I considered opening position in Meta after seeing the drop. But after considering what I just said, I am not sure. I think it's possible fb faces more competition in this space. And lets be honest, tiktok does feel more fresh and organic than even insta. Thoughts?
The real reason? The economy stinks but no one wants to tell you that.
I have a whole other rant about economy. Someday will type it out. Meta was trading at 32PE today while beating earnings expectation and still growing 20% revenue YoY in bad economy. 3.2 B daily active users. Has great initiative with Ray ban glasses; 5 years from now everyone will have it. People think Tesla is the new apple. It's not. Making things we use on a daily basis below 1k price smart is the next iPhone. Smart glasses make a lot of sense imo. The VR experiment will be kept alive mostly by gamers.
Everything is overpriced atm but it’s gonna be a while before we see a crash because it’s an election year
analysis that we all deserve. How is tiktok even related, listen earnings call.
TikTok will not be sold. It’s a security threat for China to sell it. It will end up just being banned like it was in India
Why is it a threat to China?
They are not open to selling some algorithms like the recommendation system algorithms as those are apparently used by several Chinese government backed companies.
It’s because they said they will invest a lot in AI infra over the next few yrs and that’s different than what the market wants right now around profits and cost cutting. TikTok could be a reason too but I think it’s likely the capex involved similar to what happened when the narrative was heavy investment in the metaverse. I wouldn’t think much of it, long META and Zuck!
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Not surprised the most cringe comment is from Linkedin
I’d argue that your comment is the most cringe @amazon
No. Cause of fall is increased projected expenses and pushing of “AI monetization” to further down the road (after 2024 at the earliest)
I only see positive moments here. They would increase innovation and hire more people. Other tech companies to follow
Numbers look solid other than higher ops cost due to heavier investment in AI. Works out for Metamates because refreshers are at the lower end. Pretty content either way (am a Metamate but didn’t want to give up ambassador badge)
What do you mean refreshers are at the lower end?
Lol... refreshers at lower end 😂
This is straight up a tin foil hat conspiracy theory. THE REAL REASON - Investors are getting tired of companies splurging on AI. Meta's shareholders used to be all in on Zuckerberg's AI dreams when ads were booming and costs were down. But now, with slower revenue growth and higher costs, they're not as keen. Just like Meta's virtual reality plan, AI is a massive project costing billions with no clear profit timeline. Meta plans to spend up to $10 billion this year on infrastructure. They don't detail AI spending like they do for the metaverse, but you can see it in their capital expenses. Last year, they spent $28 billion, but this year, it's up to $40 billion, $3 billion more than expected. That's a quarter of their expected revenue. And next year, they'll spend even more.
Investors are very happy to buy Tesla and Nvidia's AI story. Why wouldn't they buy Meta's? They have most number of users in the World on their platform with one of the most capable llm model. They will also be launching their own gpu chips very soon it seems. Meta "wasted" billions on VR but they created an entire pipeline for doing things they have never done before. Also, I am not disagreeing with tin foil hat accusation. I wear it with pride.
It isn't this: 'AI is a massive project costing billions with no clear profit timeline.' It is the energy inputs required to generate those profits, and importantly, where those inputs (green or not) are going to come from. I work in the energy industry, and realistically, it will take the USA alone significantly more investment than what's being put into AI just to run data centers catered for AI growth. There are many skeptics out there, especially energy professionals, who simply laugh in the face of AI for this very reason.
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L4 Google -> 45 interviews, 5 offers, AMA
Meta will probably buy it
FTC entered the conversation. Lina Khan didn't let us buy fing Giphy, there's no way she'll let us come anywhere close to TikTok. The orange orangutan already hates Meta so no chance even if the government changes either.
Google or Microsoft might buy it for the data to feed AI models.