Eli5 why Meta is doing so poorly since people are still using it and advertising on it.
In: 4
There’s two different metrics for “doing poorly”
As a business Facebook/Meta is doing fine – $28.8B in revenue last quarter, $8.3B profit.
As an *investment* though, shareholders are concerned that the company is no longer growing, and thus no longer deserves a high premium on the share price.
Plenty of companies exist in this stage of profitable but marginal growth indefinitely, but tech companies have been treated as huge growth investments for years so it’s difficult to transition from the “tech startup” role into a “slow and steady utility company” role.
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