Hey Dani! Plenty more to cover on Meta. I wanted to focus primarily on the narrative in this piece, and will dive into more specifics + valuation down the line.
Spent $36B on Metaverse/Reality Labs since 2019 so I wouldn't say small :) $9B this year alone. It shows it isn't a sideproject but a shift in core focus an he mentions in past earnings calls also. Zuck should be investing in the Metaverse but not too this level IMHO as it could be a little too early. Next year if he scales it back Metaverse to a sideproject (still has this upside if market goes in this direction as groundwork is done) it would be a good entry point for me even as the price will pop 5-8% on this news but the moneypit downside will be limited. Love the article as people are way too negative towards Meta (I advertise on there and great) and I might be too greedy wanting a pivot also.
Thanks for your thoughts, Tim. I don't mean to say that the company isn't spending extraordinary sums on RL, rather, that it is dwarfed by the total spend focused on FoA, which is truly a wonderful business. I agree that the degree of RL spend seems lofty, but part of it is trusting Zuck and team regarding capital deployment, and historically they have done an exceptional job overall, recent buybacks notwithstanding.
I think regardless of outcome, Meta will teach us quite a bit in the years to come.
Hi Devin,
Great work, a pleasure to read. I like your position on growth as more than DAU growth but vertical integration from current users.
Kind regards,
Dani
Hey Dani! Plenty more to cover on Meta. I wanted to focus primarily on the narrative in this piece, and will dive into more specifics + valuation down the line.
Thanks for reading.
Spent $36B on Metaverse/Reality Labs since 2019 so I wouldn't say small :) $9B this year alone. It shows it isn't a sideproject but a shift in core focus an he mentions in past earnings calls also. Zuck should be investing in the Metaverse but not too this level IMHO as it could be a little too early. Next year if he scales it back Metaverse to a sideproject (still has this upside if market goes in this direction as groundwork is done) it would be a good entry point for me even as the price will pop 5-8% on this news but the moneypit downside will be limited. Love the article as people are way too negative towards Meta (I advertise on there and great) and I might be too greedy wanting a pivot also.
Thanks for your thoughts, Tim. I don't mean to say that the company isn't spending extraordinary sums on RL, rather, that it is dwarfed by the total spend focused on FoA, which is truly a wonderful business. I agree that the degree of RL spend seems lofty, but part of it is trusting Zuck and team regarding capital deployment, and historically they have done an exceptional job overall, recent buybacks notwithstanding.
I think regardless of outcome, Meta will teach us quite a bit in the years to come.
Very good article thank you!
Thanks for reading, Alessandro!