4 ms·

Did they even look at the financials? While I’m not a fan of Facebook the Meta business is very profitable. Markets overreact in the short term.

• thr0wawayf00 5y ago
  Markets don't care about revenue as much as growth. If a company isn't growing, it's dying and static revenue figures don't assuage investors. With declining user engagement and investments in the metaverse still many years away from an ROI, the markets are essentially saying that Facebook doesn't have the high-growth runway they've been used to for all of these years anymore.
  • tmule 5y ago
    Yeah, but a P/E ratio of 16 makes little sense despite that.
    • sokoloff 5y ago
      I think a P/E of 16 is too low for Facebook now. Others think it’s too high. That exact disagreement is what makes the market.
• faizshah 5y ago
  I mean if a business’s value is its future cash flows and the recent news was that they had decreasing users and engagement plus decreasing revenue per user due to Apple’s privacy changes I would say that the market reaction is pretty reasonable. Also beyond Facebook, I was listening to a podcast from Saxo Bank where they talked about how this could show more broadly a trend for declining engagement and growth for social media companies as we come out of covid and people begin spending less time on their devices than they did during the height of covid.