A year ago, Facebook was among the five most valuable U.S. companies, with a market cap over $1 trillion. Now the company, renamed Meta, is worth about $270 billion, no longer in the top 20 most-valuable U.S. companies.
Far from Facebook’s Big Tech days, Meta is no longer among the 20 most valuable U.S. companies after the stock sank 23% on Thursday. The company has shed 70% of its value this year and 74% since the stock peaked in September 2021, totaling over $730 billion in market cap lost.
The stunning collapse of Meta’s share price is reminiscent of the dot-com bust days, but far bigger in terms of value erased from a single company. The slide began late last year as signs of a sputtering economy started to emerge, and accelerated in early 2022 after the company said Apple’s privacy change to iOS would result in a $10 billion revenue hit this year.
MacDailyNews Take: Good.
As we wrote back in February, “The fact that Apple’s giving people the choice to be tracked or not via App Tracking Transparency hurts Facebook et al. not only highlights the inherent flaw in the business model of these societal cancers, it makes us laugh. 🤣”
Those who that rely more on targeted ads to generate revenue are the ones most negatively affected by Apple’s App Tracking Transparency privacy framework. – MacDailyNews, October 27, 2021
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Here’s to Meta not being in the top 10 richest US companies. I bet Ziuck must be losing his mind 😂😂
The earnings reports for Apple is not very good either.
MDN just posted these results from the earnings call, that looks good to me.
Net sales by category:
• iPhone: $42.626 billion (vs. $38.868 billion YoY)
• Mac: $11.508 billion (vs. $9.178 billion YoY)
• Wearables, Home and Accessories: $9.650 billion (vs. $8.785 billion YoY)
• iPad: $7.174 billion (vs. $8.252 billion YoY)
• Services: $19.188 billion (vs. $18.277 billion YoY)
Doofus
Why would anyone invest in current Meta? Its social media platforms intentionally alienate a large portion of existing and potential users. Fewer less diverse user eyeballs, lower ad revenue. Meta is less successful and profitable by design, and its leadership clearly does not care about optimally increasing value for shareholders. That’s why Meta is dropping in value… Don’t blame Apple. To fix, change leadership like at some other major social media company.
Facebook is great for finding out the open hours of the restaurant you want to head over to. And what bands are playing at a venue on the weekend. Other than that, I don’t bother with it much. I really don’t care who had a grandchild, what my friends political opinion is, or what the sunset looks like from my former classmate’s backyard.
Zuck: Yeah so if you ever need info about anyone at Harvard
Zuck: Just ask.
Zuck: I have over 4,000 emails, pictures, addresses, SNS
[Redacted Friend’s Name]: What? How’d you manage that one?
Zuck: People just submitted it.
Zuck: I don’t know why.
Zuck: They “trust me”
Zuck: Dumb fucks.