Operating at the Intersection of Technology and the Capital Markets
Tag: WhatsApp
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
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's remake is no sure bet. The Facebook blue business is yesterday's business. Its best attribute is that it generates significant free cash flow that may be deployed toward remaking the company.Instagram is in the process of being retooled. IG's recommendation algos are being rewritten to more closely match TikTok's - meaning users would see … Continue reading META’s Remake Is No Sure Bet
Meta Platforms/Facebook (META) should acquire Intuit (INTU). Meta's Facebook unit has peddled its wares to small businesses for some years. To this end, META agreed to acquire Kustomer (provider of CRM tools to small businesses), in November 2020. That deal finally closed in February 2022. Acquiring Intuit would advance the execution of Meta's small business … Continue reading Meta (Facebook) Should Acquire Intuit
Examples of Technology Companies Operating at Scale Apple (ticker: AAPL): 1.4 billion active Apple devices. CoStar Group (ticker: CSGP): CoStar's platform tracks over 100 billion sqft of real estate inventory and more than $1.5 trillion of transaction activity.Facebook (ticker: FB): Facebook's messaging service - WhatsApp - has 2 billion users. Google/Alphabet (ticker: GOOG): More than … Continue reading Our Favorite Topic: Scale
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