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I don't know if I would agree. The fact that growth is stopping is more damaging to share price than the actual material impact of the growth stoppage, until th
by cookingmyserver 5y ago
I don't know if I would agree. The fact that growth is stopping is more damaging to share price than the actual material impact of the growth stoppage, until the price corrects.
I think there is a good chance Meta is not bluffing. It could be viewed as a way to slow or quarantine the spread of data regulations. Pull out of Europe and let Europe develop its own competitor that will have control over Europe, but won't be able to compete abroad. Satiating European want for data regulation and privacy laws in Europe would, hopefully in Meta's view, dampen the broader push for these regulations (a push being led by Europe). Essentially let Europe isolate themselves. This will probably be followed by Meta and other corporations pushing propaganda and marketing highlighting any mistake or failure of European replacements.
Pulling out of Europe would hurt, but at the end of the day Europe's population is small and already developed. In 10 years are there going to be a lot more Europeans spending a lot more, requiring more advertising? Doubtful.
But this could also backfire if other countries look at new European competitors with jealousy and want to emulate it.