You probably heard about how Mark Zuckerberg’s wealth plummeted by nearly US$30B.
Well, that is because Meta released its quarterly results.
And Meta’s market cap nose-dived 27%, wiping US$230B of its valuation in a single day.
What tickles me the most is why every news outlet and reporting somehow always manages to squeeze in this one line:
“Meta, the company formerly known as Facebook..”
Seriously.
Its like everywhere.
Is is an innocuous jab at Mark or did Meta specifically requested for it when they wrote the press release?
It reminds me of “the artist formerly known as Prince”, who did it to specifically make a point about how his record label was overly controlling over every aspect of his life.
If anyone knows why Meta does that, do share!
“The development is being called the biggest one-day decline in US history and dwarfs every other loss sustained in Wall Street’s recent tech stock bloodbath by sheer comparison.”
Why?
Well Wall Street thinks that Meta isn’t the rocketship it used to be.
They think Meta lost the lead to Tiktok and user growth has fallen for the first time in Meta’s history.
“Facebook saw its user numbers drop for the first time in its 18-year history last quarter, falling by about half a million to 1.929 billion daily active users.”
They also feel that Meta is spending way too much in development of its Metaverse, $10B to be exact.
Also Apple’s privacy changes to its iOS forces apps like Facebook to ask for permissions before tracking their activities.
This will inevitably allow more users to decline and that will definitely hurt Meta’s revenues, which comes largely from ads.
Painful, no doubt.
But that is how the stock market works no?
The stock market reacts to the rumours and is fueled primarily by speculations.
There are ups and downs.
Sometimes the downs are lower than we want, but it will bounce back if the company fixes things and gets back on track.
Or could they?
Could this be a start of Meta’s decline?
Could this signal that the metaverse is not all that was promised?
Could this mean that nobody actually cares about the metaverse?
Could this signal the rise of Tiktok as a true global titan?
Who cares.
Facebook and Meta will survive.
They are titans.
It will take more than a 27% dip in stock to kill a titan.
Question is…
Did you buy the dip?
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#startups #business #startupx #growth #success #socialmedia #culture #entrepreneurship #strategy #facebook #meta #markzuckerberg #revenues #stocks #metaverse #instagram
