Threadguy on Meta's tough spot
Threadguy breaks down why Meta is in a difficult position. He explains that while their core business is strong and generates massive profits, with a $1.5 trillion valuation, reaching $5 trillion to compete with the world's top three companies will require something more. Zuckerberg's pursuit of the metaverse hasn't panned out as hoped.
Transcript (en)
I had a long convo with Tulip King this morning about meta, where they're kind of in a weird spot. You know? Like, their core business rocks, and they fucking print money, and they're worth $1.5 trillion. But to get to $5 trillion, $4 trillion, to compete with top three companies in the world, they need something else. And Zuck has gone after the metaverse stuff. That hasn't gone well. He's gone after the AR, VR. It's, like, done fine. he thought metaverse was going to be huge for covid that was obviously a miss and they went after open source ai they kind of gave up i don't know if you could call it a failure but they're in this weird spot where they have all of this fucking compute they don't really know what to do with it they are historically incredible at acquisitions instagram and whatsapp but their ai acquisition of scale and alexander wang was not a smash success at least yet and so So maybe there's this idea that they can recoup tons of their CapEx spend because they have all this compute and it's really valuable and they can sell it, lend it out, whatever. And then it makes Meta's fundamentals on top of their already existing business look great. But yeah, they're in a tough spot.
