Meta should be fine for the short term, but many newer companies will run out of capital.
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Tiktok ate our lunch.
There is a new term in the industry: “Zuckanian “. It describes a company that gets over valued and provides next to nothing. As other member noted it provides only a message board
We like to say "you can't sneak up on Zuck" but it looks like he blinked and the stock tanked during that one blink.
Anyone in the industry during the 2000's knows that a message board is not a trillion dollar company. Zuck's legacy will be destroying the only thing he had going for him, his luck in creating a trillion dollar message board. His focus was lost, messing around with election stuff, surfing in Hawaii, clearly distracted
Meta lost 70% + stock value, any public traded company losing that much is not good. infact it will suffer next couple years, already FB is not attracting younger generation. its full of ads and cr-p.
Many metrics value the stock market as comparable to 2000, and even to 1929:
https://www.multpl.com/shiller-pe
We had a bo-m before the pandemic, and then more stimulus to get us through the pandemic. Many companies got over-funded and over-expanded.
Booms are usually followed by busts, but we have not yet seen a bust. The S&P 500 is down only ~20%.
In this environment, we should hope for the best and prepare for the worst.
disturbing assessment!! These are dark times indeed!
I was here in 2000. What happened then was super intense. The entire industry almost went belly up and San Francisco over night turned into a ghost town. I recall at one point there were almost more moving trucks than cars. I don't see that same level now. With both Meta and Twitter the layoffs are coming from poor leadership ( aka- Musk taking over a company he didn't want and tried backing out of) and with Meta- poor product rollout. The rest of the industry got a little too fat and happy and was partially shielded from the economic mayhem everyone else faced during the earlier part of the pandemic. Now it is getting its turn.