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Wall Street rewarded Meta with a massive jump in share price (+15% in one day) when Zuck stated on an earnings call that he was all now about efficiency (and th

Wall Street rewarded Meta with a massive jump in share price (+15% in one day) when Zuck stated on an earnings call that he was all now about efficiency (and therefore a tacit admission that he won't just throw the entire company off the VR cliff into the abyss). Zuck probably thinks more of the same will buy additional good will from Wall St.

PheonixPharts 4y ago
And don't forget that Meta just did a massive stock buyback, so this isn't just about investors out there in the world, this is about Meta itself. I've started to pay a bit more attention and noticed that there do seem to be a fair number of major investors buying up more shares of a down company before layoffs are announced. I like to imagine that what we're seeing is a healthy correction and move towards more profitable, sanely run companies. But I can never recall a time in recent years where Wall Street acted in a way I would call "refreshingly sane".
- vasco 4y ago
  There's no health anything. Interest rates go up, some of this money goes out of the stock market and into other things. When they come back down, the companies will operate in the same way again. Everyone is just responding to financial incentives, nobody is trying to run anything in a "healthy" way, as if there was a margin which the universe defined as healthy. They know this and could've underhired as this was always a possibility but the game rewards having the pedal to the metal when it's going up, and that's what they will do next time again.
- foobarian 4y ago
  > I've started to pay a bit more attention and noticed that there do seem to be a fair number of major investors buying up more shares of a down company before layoffs are announced. One other thing I feel I noticed (it's probably not the case but it's one of those things you are just paranoid about) is the stock price peaking around RSU award time. At least they now tend to happen quarterly instead of yearly.
amethyst 4y ago
+15% in one day, when the stock is already down 75% from its peak a year or two earlier, doesn't feel like a "massive jump".
- operatingthetan 4y ago
  Sounds like a band-aid on a gaping wound.
  - dralley 4y ago
    But is it really? Or did a combination of COVID-tech-mania and low interest rates just boost stock prices well above what was actually reasonable?
    - operatingthetan 4y ago
      There definitely has been a sentiment change on meta, but I think 'COVID-tech-mania' is a poor excuse for them failing to effectively diversify.
      - snovv_crash 4y ago
        And yet when they try to diversify to VR people say they should focus on what makes them money...
        JKCalhoun 4y ago
        I suspect the people that said that though thought that VR was a bad place for anyone to throw money. (I happen to agree.)
    - lotsofpulp 4y ago
      The differed is Meta’s potential as perceived by the markets has dropped relative to Apple/Microsoft/Google/Amazon. Previously, those 5 were all viewed as having the sky as the limit, but now there are clear differences in expectations. There is Apple/Microsoft, then Google/Amazon, then a ways down is Meta.

PheonixPharts 4y ago

And don't forget that Meta just did a massive stock buyback, so this isn't just about investors out there in the world, this is about Meta itself. I've started to pay a bit more attention and noticed that there do seem to be a fair number of major investors buying up more shares of a down company before layoffs are announced. I like to imagine that what we're seeing is a healthy correction and move towards more profitable, sanely run companies. But I can never recall a time in recent years where Wall Street acted in a way I would call "refreshingly sane".

vasco 4y ago
There's no health anything. Interest rates go up, some of this money goes out of the stock market and into other things. When they come back down, the companies will operate in the same way again. Everyone is just responding to financial incentives, nobody is trying to run anything in a "healthy" way, as if there was a margin which the universe defined as healthy. They know this and could've underhired as this was always a possibility but the game rewards having the pedal to the metal when it's going up, and that's what they will do next time again.
foobarian 4y ago
> I've started to pay a bit more attention and noticed that there do seem to be a fair number of major investors buying up more shares of a down company before layoffs are announced. One other thing I feel I noticed (it's probably not the case but it's one of those things you are just paranoid about) is the stock price peaking around RSU award time. At least they now tend to happen quarterly instead of yearly.

amethyst 4y ago

+15% in one day, when the stock is already down 75% from its peak a year or two earlier, doesn't feel like a "massive jump".

operatingthetan 4y ago
Sounds like a band-aid on a gaping wound.
- dralley 4y ago
  But is it really? Or did a combination of COVID-tech-mania and low interest rates just boost stock prices well above what was actually reasonable?
  - operatingthetan 4y ago
    There definitely has been a sentiment change on meta, but I think 'COVID-tech-mania' is a poor excuse for them failing to effectively diversify.
    - snovv_crash 4y ago
      And yet when they try to diversify to VR people say they should focus on what makes them money...
      - JKCalhoun 4y ago
        I suspect the people that said that though thought that VR was a bad place for anyone to throw money. (I happen to agree.)
  - lotsofpulp 4y ago
    The differed is Meta’s potential as perceived by the markets has dropped relative to Apple/Microsoft/Google/Amazon. Previously, those 5 were all viewed as having the sky as the limit, but now there are clear differences in expectations. There is Apple/Microsoft, then Google/Amazon, then a ways down is Meta.