Big Technology Podcast Merits Of Metaverse + Big Tech Wipeout — With Eric Jackson
Nov 2, 2022
Eric Jackson, president and portfolio manager at EMJ Capital, dives into the significant downturn of major tech companies, focusing particularly on Meta's staggering 71% drop this year. He discusses the fierce competition Meta faces from TikTok, the implications of their pivot to the metaverse, and the skepticism surrounding their operational expenditures. The conversation expands to include Amazon's struggles and Apple's contrasting resilience, shedding light on the shifting dynamics of the tech market and what the future might hold for these giants.
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Tech Volatility and FAANG
- Smaller tech companies felt the impact of market downturns earlier than larger companies due to their inherent volatility.
- FAANG stocks attracted investors seeking safety in 2021, creating a false sense of security.
Market Bottom and Tech
- The current downturn in big tech stocks could signal that the overall market downturn is nearing its end.
- Investors will likely shift from FAANG stocks to smaller tech companies due to attractive valuations and growth potential.
Meta's Value Proposition
- Meta's significant drop in market capitalization, while substantial, doesn't automatically make it a good investment opportunity.
- Concerns about core business challenges and the metaverse investment's uncertain payoff warrant caution.