#Facebook parent Meta saw more than $85 billion shaved off its market cap on Thursday after reporting an alarming 52-percent drop in profits for the third quarter. Shorter, PhD Marvin Liao Luke Dixon, CFA, CAIA Kinson Lo Avanthi Shah Latif Nathani Asher Siddiqui Alfredo Capote Robert Park Stuart Browne Michael E. Let's see what Amazon delivers tomorrow, particularly wrt to AWS, but don't hold your breath.ĭave McClure Stephanie M. was down 30% after reporting a weaker than expected Q3. (down 9.1%) and Texas Instruments (down 2.6%).Īnd last week Snap Inc. The worst offender was Facebook's parent, META Platforms, with a 4% revenue decline, a 19% costs increase, soft guidance, and a declaration that ongoing losses at their Reality Labs "metaverse" unit were $9.4B YTD and that losses are expected to widen significantly in 2023.Īlso struggling is Microsoft (down 7.7% after hours, decent earnings but a significant slowdown in it cloud Azure unit), Alphabet Inc. Seems like the recession is here now, at least for (big) tech, major misses on top lines across the board for ad driven consumer companies and a somewhat startling inability to manage their costs.Īfter a solid week last week on the earnings front, with banks (particularly Wells Fargo and Bank of America leading the way), big tech registered a string of disappointments this week. I hope FB sticks with this Metaverse Idea till the end. Plenty of wonderful, world changing products are scraped by Microsoft & Google frequently(Google Stadia for ex). I just hope they don't get forced to scrape this Metaverse initiative by their share holders. Humanity as a whole can learn a lot of valuable lessons from this whole episode. Meta's metaverse project would also make an interesting business case study for future VR entrepreneurs. ![]() Even if Meta fails in making meta verse popular all the research work that went into this could be reused by another company in the future to build wonderful VR products. They are putting their money back into the market. These people are spending billions of their dollars on creating brand new technology. Or worse they spend that money on lobbying the governments to undo environment protection laws, labor laws etc. They spend it on buying back shares or giving their executives fat bonuses or acquiring minor companies to eliminate competition. They keep pushing the same crappy product to their consumers every year tweaking a few minor things here and there and hiking the price by a couple of hundred dollars. Plenty of companies don't innovate at all. If you don't have faith in their mission why did you invest in their stock in the first place. People who held Tesla's stock were richly rewarded weren't they? If you are holding Meta stock, you need to have faith in their mission(I am not holding Meta stock BTW). Tesla was losing money left and right a couple of years ago. But aren't you glad that internet was invented? And yet we clocked in 100s of hours in these games didn't we. Tomb Raider in the early 00s looked like a potato that I pealed compared to the Tomb Raider today that looks like a potato that my mom peeled. ![]() In Mario you couldn't see the whole other side of his body or his world. In doom you couldn't even see your character since it was a FPS game. Since people spent time and money building them, we have wonderful & aesthetic games today. Well have you played any 90s video games? Do you think the graphics in those games were marvelous? They were not. Why are people even complaining that Facebook is spending billions of dollars on VR technology lol?
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