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Facebook's earlier valuation was reasonable only with an assumption that it will reasonably rapidly grow much, much larger than it is now. The market now starte
by PeterisP 5y ago
Facebook's earlier valuation was reasonable only with an assumption that it will reasonably rapidly grow much, much larger than it is now. The market now started to believe that its long-term growth is going to be slower and more limited (i.e. disbelieving the Meta assertion that they're going to unlock humongous growth through metaverse), so that brings a huge adjustment down, closer to numbers justified by their current revenue.
- woodpanel 5y agoI echo OPs coup de grace statements. The underpinning failure of FB is indicated by - ad-revenue (97% of FB's revenue) has an uncertain growth-perspective (as seen with the iOS privacy updates) - Metaverse and VR in general (highlight Zuck's desperate, decade-long search for a new tech-moat) is a fad that is not going mainstream anytime soon - inability to lead libra into success All of these failures may seem unconnected but what ties them together is a deep underlying distrust of the company itself by the public