Operating at the Intersection of Technology and the Capital Markets
Tag: Facebook
Analysts estimate that META will grow revenues in 2023 over 2022. However, the estimates I see imply that revenue growth will be back-end loaded. We know how that usually ends. I see META struggling to generate year-over-year Revenue growth and expect for 2023 to be a down Revenue year. Zuckerberg is not an Operator. META's … Continue reading META: Where Will Growth Come From?
The WSJ reports that YouTube is negotiating with the NFL for exclusive rights to broadcast NFL Sunday Ticket. YouTube/Google and Amazon Prime (Thursday night NFL games), are essentially pursuing a U.S. audience with their respective NFL strategies. The NFL ought to court YouTube in particular given that YouTube - not TikTok, not Instagram nor Snap … Continue reading YouTube & The NFL
Lina Khan's FTC is bad news. It reminds me of the FTC during the Obama Administration - quick to pick a fight with companies (I know from first-hand experience), without understanding the competitive landscape or how markets work. In this case, Microsoft's Xbox unit is the platform and Activision is the content publisher that will … Continue reading FTC Sues To Block Microsoft’s Activision Acquisition
The WSJ reports that headcount cuts are coming to META, perhaps on Wednesday of this week. META's R&D expense grew by 45% y-o-y in the September quarter even as Revenue declined by almost 5%. G&A grew by 15% and Sales & Marketing grew by 6%. Given that R&D now represents 33% of Revenue (as compared … Continue reading Where META May Reduce Headcount
META will remain a broken company until Zuckerberg allocates the same passion toward repairing the core business as he has allocated toward building the metaverse. However, I have never met an entrepreneur that felt equally passionate about a shiny new object AND a repair job. Therein lies the rub. Zuckerberg's interests have clearly evolved. META's … Continue reading META Ought To Split In Two
Below are two paragraphs from META's earnings release. The language is from the "CFO Commentary" section and is symptomatic of a company that is operationally lax. It may be too late for META to find religion around operational excellence. Operational efficiency is a skill set that is developed over years, it is not a cost-cutting … Continue reading Meta Is Operationally Reactive
Zuckerberg is an entrepreneur at heart, not an operator. Therein lies the problem. Our view is that as the macro environment continues to slow and as the original Facebook and Instagram platforms underperform, Zuckerberg will pull investment forward on his metaverse initiative. The metaverse is what interests Zuckerberg and that's where he will spend his … Continue reading META’s Downside Risk
Meta Platforms (META) would provide the UFC an on-ramp to the metaverse. The UFC would provide META with valuable global content that could both serve as grist for META's virtual reality mill and provide META with a competitive edge in the content wars versus TikTok, Apple (AAPL), Amazon/Prime Video/Twitch (AMZN), Apple (AAPL), Google/YouTube (GOOG), Microsoft/Xbox … Continue reading META & The UFC?
The Metaverse becoming reality is at least a decade away if not 20-25 years away. The Metaverse as we imagine it is one with rich graphics, hundreds of millions of users and billions of online transactions. There are two primary obstacles preventing this reality: The Metaverse suffers from poor graphics. Content companies including Meta Platforms/Facebook … Continue reading The Metaverse Is At Least A Decade Away
It is unclear how Lina Khan's FTC picking fights with the largest Technology companies is making markets more competitive. (AAPL, AMZN, GOOG, INTU, META, MSFT) In the case of META, our view is that M&A is the best way for the company to get back on track. We would be in favor of META making … Continue reading Lina Khan’s FTC Is A Bully
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