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I think you're taking this too much at face value. Facebook is no longer cool, sure. But Meta platforms have basically peaked, they aren't adding significant n
by SilverBirch 4y ago
I think you're taking this too much at face value. Facebook is no longer cool, sure. But Meta platforms have basically peaked, they aren't adding significant numbers of users, and they're going to struggle to monetize those users due to a number of headwinds - decreased ad spend due to the economic environment, the changes made on iOS, a change app-mix to less monetizable apps (it's harder to monetize Whatsapp vs Instagram), and the fact that they're flat to down in the markets that actually have money (US, Canada, Europe).
Meanwhile, their costs are through the roof, they're spending billions on a market segment that may not exist and the executive leadership at the company isn't focused on the core business.
Meta just running their social media business would be a good dividend stock. They probably are transitioning away from growth to a mature company and can take a lot of profits off the table. But "Meta we're going to chase another home run" is both not a growth but also a bad mature stock...