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> meltdowns Huh?. Meta's growth has slowed, but they are a money printing machine. Earnings have gone down because of the enormous bet Zuck has made on the met

> meltdowns Huh?. Meta's growth has slowed, but they are a money printing machine. Earnings have gone down because of the enormous bet Zuck has made on the metaverse. Twitter has been barely scraping by for years. The two companies are not really even comparable.

p0pcult 4y ago
No, earnings have been going down because Apple fucked Meta with Apple's policy change on asking for consent to be tracked. Meta has even stated as much in various earnings calls since this happened. This has severely hurt Meta's ad revenue, i.e., earnings. The metaverse stuff is a bad bet, you are correct, but is not likely impacting earnings in any significant way.
- matwood 4y ago
  Revenue has slowed from the Apple change, but the drop in Q3 profits can almost entirely be pinned on RL as staff and other investments has accelerated. > company’s rising costs and expenses, which jumped 19% year over year to $22.1 billion during the quarter. > Meta’s Reality Labs unit, which is responsible for developing the virtual reality and related augmented reality technology that underpins the yet-to-be built metaverse, has lost $9.4 billion so far in 2022. The effects from the Apple changes are mostly in the rear view mirror at this point. You could attributed a 4% revenue hit to them, but those can also be attributed to a general slowing economy. https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more-money-building-the-metaverse.html https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more...
- colinmhayes 4y ago
  Earnings down 4% in bad macro conditions for advertising and compared to a pandemic when people spent more time on the internet. I don't think facebook revenue is going anywhere soon, a decade from now though who knows.
  - p0pcult 4y ago
    https://www.cnbc.com/2022/02/02/facebook-says-apple-ios-privacy-change-will-cost-10-billion-this-year.html https://www.cnbc.com/2022/02/02/facebook-says-apple-ios-priv...
jryhjythtr 4y ago
Their income and operating margin has almost halved, compared to 2021. Their free cash flow is 1/50th of the previous few quarters. Those are truly horrible results. FB was a money printing machine, but they trashed it.
- School-Cotton 4y ago
  Apple trashed it, not FB itself.
  - jryhjythtr 4y ago
    FB started sinking money into the Metaverse long before that.
    - matwood 4y ago
      Not at the same scale. It's been accelerating and continues to accelerate. From another announcement today: > "We continue to anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year," https://www.marketwatch.com/story/meta-lowers-expense-forecast-for-next-year-as-it-announces-broad-layoffs-2022-11-09 https://www.marketwatch.com/story/meta-lowers-expense-foreca... Everyone wants to dance on Meta's grave, but it's way too soon. Yes, the Apple change gave them a top line haircut, but if the RL spend is excluded, they are making a ton of money. I'd also argue that the real headwinds are the general economy and TikTok.
      - jryhjythtr 4y ago
        >the real headwinds are the general economy and TikTok Right, and not Apple's actions.
- roflyear 4y ago
  They are still making insane profits.
loeg 4y ago
High revenue but the stock is down 74% this year for a reason.
- colinmhayes 4y ago
  Because it's run by an unaccountable megalomaniac who has signalled that he doesn't give a shit about his investors, not because of any fundamentals.
  - loeg 4y ago
    Bad governance is fundamental!
    - colinmhayes 4y ago
      I don't think Mark saying "we're going to focus on the metaverse instead of making money for a few years" is a meltdown. They're still making money, their earnings are still sky high, they're just spending more than they need to.

p0pcult 4y ago

No, earnings have been going down because Apple fucked Meta with Apple's policy change on asking for consent to be tracked. Meta has even stated as much in various earnings calls since this happened. This has severely hurt Meta's ad revenue, i.e., earnings. The metaverse stuff is a bad bet, you are correct, but is not likely impacting earnings in any significant way.

matwood 4y ago
Revenue has slowed from the Apple change, but the drop in Q3 profits can almost entirely be pinned on RL as staff and other investments has accelerated. > company’s rising costs and expenses, which jumped 19% year over year to $22.1 billion during the quarter. > Meta’s Reality Labs unit, which is responsible for developing the virtual reality and related augmented reality technology that underpins the yet-to-be built metaverse, has lost $9.4 billion so far in 2022. The effects from the Apple changes are mostly in the rear view mirror at this point. You could attributed a 4% revenue hit to them, but those can also be attributed to a general slowing economy. https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more-money-building-the-metaverse.html https://www.cnbc.com/2022/10/26/meta-plans-to-lose-even-more...
colinmhayes 4y ago
Earnings down 4% in bad macro conditions for advertising and compared to a pandemic when people spent more time on the internet. I don't think facebook revenue is going anywhere soon, a decade from now though who knows.
- p0pcult 4y ago
  https://www.cnbc.com/2022/02/02/facebook-says-apple-ios-privacy-change-will-cost-10-billion-this-year.html https://www.cnbc.com/2022/02/02/facebook-says-apple-ios-priv...

jryhjythtr 4y ago

Their income and operating margin has almost halved, compared to 2021. Their free cash flow is 1/50th of the previous few quarters. Those are truly horrible results. FB was a money printing machine, but they trashed it.

School-Cotton 4y ago
Apple trashed it, not FB itself.
- jryhjythtr 4y ago
  FB started sinking money into the Metaverse long before that.
  - matwood 4y ago
    Not at the same scale. It's been accelerating and continues to accelerate. From another announcement today: > "We continue to anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year," https://www.marketwatch.com/story/meta-lowers-expense-forecast-for-next-year-as-it-announces-broad-layoffs-2022-11-09 https://www.marketwatch.com/story/meta-lowers-expense-foreca... Everyone wants to dance on Meta's grave, but it's way too soon. Yes, the Apple change gave them a top line haircut, but if the RL spend is excluded, they are making a ton of money. I'd also argue that the real headwinds are the general economy and TikTok.
    - jryhjythtr 4y ago
      >the real headwinds are the general economy and TikTok Right, and not Apple's actions.
roflyear 4y ago
They are still making insane profits.

loeg 4y ago

High revenue but the stock is down 74% this year for a reason.

colinmhayes 4y ago
Because it's run by an unaccountable megalomaniac who has signalled that he doesn't give a shit about his investors, not because of any fundamentals.
- loeg 4y ago
  Bad governance is fundamental!
  - colinmhayes 4y ago
    I don't think Mark saying "we're going to focus on the metaverse instead of making money for a few years" is a meltdown. They're still making money, their earnings are still sky high, they're just spending more than they need to.