Eli5 why Meta is doing so poorly since people are still using it and advertising on it.
In: 4
1. They are no longer actively growing their user base. Stock price depends largely on the possibility of future growth (so that people can get a return on their investment), so they either need to be growing their user base or expanding their profit base (e.g. monetising more of their real estate)
2. They have plunged Billions into a Metaverse which nobody is actually interested in, they have failed to show a value proposition for the metaverse, they have failed to generate a userbase, and they’ve shown no hint of monetising it in any valuable way. The market sees this as a massive folly and is punishing them for that.
3. Other brands are eating their lunch in a massive way, and Meta have not shown a clear vision for rectifying that, so the market has lost faith.
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