Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,694
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
|
Post by Opti on Feb 3, 2022 10:36:09 GMT -5
www.msn.com/en-us/news/technology/why-facebook-lost-nearly-200-billion-of-value-in-one-afternoon/ar-AATpLiy?ocid=msedgntpThoughts? Investors gave Meta CEO Mark Zuckerberg’s grandiose plans to create a metaverse, a digital world accessible through virtual reality, a big vote of disapproval on Wednesday.
Shares in the company formerly known as Facebook tanked 23% in after-hours trading on Wednesday to $249.15 after the social media giant reported tepid quarterly results. The huge drop shaved nearly $200 billion in market value from Meta, sending its total market capitalization from $900 billion tumbling to around $700 billion.
Executives blamed the disappointing results on several factors, including Apple’s privacy changes to iOS that made targeting ads to users more difficult and “supply chain disruptions” that are causing advertisers to spend less. The problems are unlikely to be resolved anytime soon.
Meta also said it spent an astonishing $10 billion in 2021 on projects related to the metaverse, which is far from bringing in any substantial revenue. The company has predicted that people will use the metaverse in the future and that big spending now in preparation will give Meta a head start over rivals.
Still, Zuckerberg has yet to make a compelling business case to investors about why his company should spend so much on the metaverse when its current business suffers from slow growth, privacy issues, and a weak ad market. The latest earnings only add to the complications. Facebook’s rebranding to Meta comes as it tries to distance itself from past crises like Cambridge Analytica and recent whistleblower leaks that showed the company failing to combat misinformation and abuse.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Feb 3, 2022 14:44:59 GMT -5
|
|
Value Buy
Senior Associate
Joined: Dec 20, 2010 17:57:07 GMT -5
Posts: 18,680
Today's Mood: Getting better by the day!
Location: In the middle of enjoying retirement!
Favorite Drink: Zombie Dust from Three Floyd's brewery
Mini-Profile Name Color: e61975
Mini-Profile Text Color: 196ce6
|
Post by Value Buy on Feb 4, 2022 9:28:12 GMT -5
It did not help FB lost a million posters in Canada and the U.S. The question being asked and not publicly by money managers yet, is where did they go and why. Look for more people disappearing from their platform, by their own volition unless they change direction and following Federal government demands of how to handle dissent which is happening now.
|
|
Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,694
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
|
Post by Opti on Feb 4, 2022 9:55:44 GMT -5
It did not help FB lost a million posters in Canada and the U.S. The question being asked and not publicly by money managers yet, is where did they go and why. Look for more people disappearing from their platform, by their own volition unless they change direction and following Federal government demands of how to handle dissent which is happening now. 1 Million sounds like less than 1% of their users if that. Heck if they cleaned up the bots and hacked accounts they could "lose" way more than that. 2018 Pew research study showing teens abandoning FB. Think well off households may have closed more than a few female teen accounts after the reveal FB did not care they were making young women feel bad about themselves. www.pewresearch.org/fact-tank/2021/06/01/facts-about-americans-and-facebook/#:~:text=10%20facts%20about%20Americans%20and%20Facebook%201%20Around,use%20it%20than%20others.%20...%20More%20items...%20
|
|
Opti
Community Leader
Joined: Dec 18, 2010 10:45:38 GMT -5
Posts: 39,694
Location: New Jersey
Mini-Profile Name Color: c28523
Mini-Profile Text Color: 990033
|
Post by Opti on Feb 4, 2022 15:05:41 GMT -5
Interesting article on FB, although it suffers the usual mistakes of using generations and other nonsense to track things. Per it 15 million users have abandoned FB since 2017. Users are migrating to other platforms. Teens are usually a small band of ages between 13 and 19, or similar. Millenials according to one web result are between 19 and 39 now, being born in the years 1982 to 2002. In any event, that generation can not be both the "generation" leaving the platform the most AND in the highest user group. One of the many reasons I think generation tracking be stupid and woefully inaccurate. VB, I believe more are leaving for other reasons than RW cheerfests. techjury.net/blog/how-many-americans-use-facebook/We begin our journey in a world, where Facebook is thought to be the king.
Facebook statistics show that more than two billion users have an account, 65 million businesses have Facebook pages and advertisers are crazy about it.
It’s no secret, castle Facebook is not the best-guarded one.
One does not simply forget the Cambridge Analytica scandal.
87 million Facebook users’ data got leaked to Cambridge Analytica. Cambridge Analytica at that time was a British political consulting firm, working on Donald Trump’s presidential campaign. Still considering that the platform got $17.44 billion from targeted ad sales in Q1 2020 alone, it’s easy to see why so much information is gathered.
You can see where the problem lies.
It wasn’t the first privacy breach. It was one of many. Although Mark Zuckerberg is swearing left and right it won’t ever happen again, he’s lost his users’ trust.
Let’s also not forget how alarmingly well Facebook targets ads sometimes.
Imagine this situation.
You’re out for coffee with friends. At some point, someone mentions they need to buy new bed sheets. The topic changes, the conversation moves on.
Later the same day you open Facebook and it’s full of ads for bed sheets.
|
|
djAdvocate
Member Emeritus
only posting when the mood strikes me.
Joined: Jun 21, 2011 12:33:54 GMT -5
Posts: 75,086
Mini-Profile Background: {"image":"","color":"000307"}
|
Post by djAdvocate on Feb 4, 2022 15:09:14 GMT -5
FB has reached their high water mark, imo. it is no longer an aspirational investment, because they won the whole cake.
|
|