Stratechery Meta Myths
Oct 31, 2022
The discussion dives into Meta's performance, tackling five common myths and showcasing its user base growth and resilience. It delves into ongoing competition with TikTok, emphasizing how short-form video content is reshaping user engagement. The conversation also navigates Meta's advertising strategies, analyzing the impact of Apple's policies and the significance of advanced algorithms. Finally, it critiques skepticism around Meta's metaverse investments while highlighting the company's potential for continued success.
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Facebook's Five Lenses
- In 2018, Ben Thompson analyzed Facebook's business through five lenses: finances, products, advertising infrastructure, moats, and raison d'etre.
- This optimistic analysis, particularly about the company's moats and growth potential, proved accurate for the following three years.
Meta's Misconceptions
- Despite the recent stock decline, the narrative of Facebook's demise is unsupported by evidence.
- Five common myths about Meta's business are driving this overreaction.
User Growth, Not Decline
- The myth of users abandoning Facebook is false, as Meta's user base continues to grow, particularly in Asia Pacific and the rest of the world.
- US and European markets remain flat, showing no sign of user churn, validating the core value proposition of connection.