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>Hardware companies grow exponentially slower than SW companies Meh. That's only because that market is irrational and many SW companies are massively overhype

>Hardware companies grow exponentially slower than SW companies Meh. That's only because that market is irrational and many SW companies are massively overhyped and overvalued. You can't possibly tell me with a straight face that WhatsApp is worth the 19 billion Facebook spent on it especially given WhatsApp is not making any money.

lotsofpulp 2y ago
WhatsApp was a very smart buy for $19B considering its ubiquity around the world. There are countries where business basically does not happen unless you are using WhatsApp. Also, Meta surely gleans tons of data from WhatsApp that they can use to better sell advertisements, even on other Meta properties.
- Rinzler89 2y ago
  But there are no ads in WhatsApp, how do they make money from those using it?
  - lotsofpulp 2y ago
    https://business.whatsapp.com/resources/resource-library/whatsapp-business-platform-resources/ultimate-guide-to-the-whatsapp-business-platform https://business.whatsapp.com/resources/resource-library/wha... https://scontent-iad3-1.xx.fbcdn.net/v/t39.8562-6/454446299_1500388867536945_5578819804663964843_n.pdf?_nc_cat=108&ccb=1-7&_nc_sid=e280be&_nc_ohc=amULx3AuFcUQ7kNvgECDcQf&_nc_ht=scontent-iad3-1.xx&oh=00_AYAL5yfxkU4VtVAFHR59MBZwAdH6jEc3WOmw7BUPIVfAsg&oe=66D21D7C https://scontent-iad3-1.xx.fbcdn.net/v/t39.8562-6/454446299_... Given Meta’s net income trajectory and the very, very widespread usage of WhatsApp, it should be safe to assume that WhatsApp is a valuable asset. If not explicitly making money, at the least it is not in a competitor’s hands, which itself is surely worth billions of dollars to Meta. https://www.macrotrends.net/stocks/charts/META/meta-platforms/net-income https://www.macrotrends.net/stocks/charts/META/meta-platform...
csunbird 2y ago
Your example is not doing you any favors to be honest. The customer base capture along with acquiring the best social graph available (people usually only message through cellphones to other people who they are truly connected, unlike the social media) was well worth 19B.
- Rinzler89 2y ago
  But there are no ads in WhatsApp, how do they make money from those using it? What use spending big on buying a large userbase if you don't monetize it?
  - xorcist 2y ago
    Companies are valued on potential earnings. I see a lot of trivial possibilities to monetize 2B+ users. You can either act on those possibilities now, or rely on the valuation to sell the company on. Sooner or later, someone will monetize, and that's what's important.
  - znpy 2y ago
    There are ads in WhatsApp. I routinely get pushed to join what are essentially corporate ad-delivery channels. Right now in my "updates" tab i am proposed stuff like Real Madrid C.F (a while ago it was another team), WhatsApp itself, Juventus and Arsenal. They're dumb as well, because I have no interest in football. That's spam advertising, they're most definitely getting money out of that.

lotsofpulp 2y ago

WhatsApp was a very smart buy for $19B considering its ubiquity around the world. There are countries where business basically does not happen unless you are using WhatsApp. Also, Meta surely gleans tons of data from WhatsApp that they can use to better sell advertisements, even on other Meta properties.

Rinzler89 2y ago
But there are no ads in WhatsApp, how do they make money from those using it?
- lotsofpulp 2y ago
  https://business.whatsapp.com/resources/resource-library/whatsapp-business-platform-resources/ultimate-guide-to-the-whatsapp-business-platform https://business.whatsapp.com/resources/resource-library/wha... https://scontent-iad3-1.xx.fbcdn.net/v/t39.8562-6/454446299_1500388867536945_5578819804663964843_n.pdf?_nc_cat=108&ccb=1-7&_nc_sid=e280be&_nc_ohc=amULx3AuFcUQ7kNvgECDcQf&_nc_ht=scontent-iad3-1.xx&oh=00_AYAL5yfxkU4VtVAFHR59MBZwAdH6jEc3WOmw7BUPIVfAsg&oe=66D21D7C https://scontent-iad3-1.xx.fbcdn.net/v/t39.8562-6/454446299_... Given Meta’s net income trajectory and the very, very widespread usage of WhatsApp, it should be safe to assume that WhatsApp is a valuable asset. If not explicitly making money, at the least it is not in a competitor’s hands, which itself is surely worth billions of dollars to Meta. https://www.macrotrends.net/stocks/charts/META/meta-platforms/net-income https://www.macrotrends.net/stocks/charts/META/meta-platform...

csunbird 2y ago

Your example is not doing you any favors to be honest. The customer base capture along with acquiring the best social graph available (people usually only message through cellphones to other people who they are truly connected, unlike the social media) was well worth 19B.

Rinzler89 2y ago
But there are no ads in WhatsApp, how do they make money from those using it? What use spending big on buying a large userbase if you don't monetize it?
- xorcist 2y ago
  Companies are valued on potential earnings. I see a lot of trivial possibilities to monetize 2B+ users. You can either act on those possibilities now, or rely on the valuation to sell the company on. Sooner or later, someone will monetize, and that's what's important.
- znpy 2y ago
  There are ads in WhatsApp. I routinely get pushed to join what are essentially corporate ad-delivery channels. Right now in my "updates" tab i am proposed stuff like Real Madrid C.F (a while ago it was another team), WhatsApp itself, Juventus and Arsenal. They're dumb as well, because I have no interest in football. That's spam advertising, they're most definitely getting money out of that.