Meta Platforms Discord Archive

Instagram is bringing ads to search results and launching 'Reminder…

Could news. Can you find the original source from Piper Sandler?

Aron — 3/22/2023 12:14 PM

It seems their research can only be accessed by its clients.

Equity Research Access

Aron — 3/22/2023 12:39 PM

SI=0%, I=3 -Meta is testing ads in search results. -It is also launching Reminder Ads, aimed at helping businesses remind people of future events. Instagram is bringing ads to search results and launching 'Reminder Ads' | TechCrunch

TechCrunch

Aisha Malik

Meta is introducing new tools on Instagram to open up additional avenues for advertising as it grapples with weak advertising demand.

Aron — 3/22/2023 11:12 PM

SI=0%, I=6 -Meta’s vice president of business messaging, Dan Levy, will leave the company in May. -He has been with the company for 14 years. -His division has been flagged by Zuckerberg for growth potential, but until last year, he was head of ad and business products. Senior Meta ads exec departs amid efficiency drive

Yahoo Finance

Senior Meta ads exec departs amid efficiency drive

A veteran Meta advertising product executive will leave the company in May, according to an internal announcement seen by Reuters, amid a months-long pruning of projects and staff that Chief Executive Mark Zuckerberg has dubbed the “year of efficiency.” Dan Levy, currently the social media giant’s vice president of business messaging, said in a…

Senior Meta ads exec departs amid efficiency drive

Potential TikTok ban sends advertisers scrambling

It seems their research can only be accessed by its clients.

Moritz | InvestmentWiki.org — 3/23/2023 11:19 AM

The price of ads is actually a very important indicator to the revenue Facebook will be bringing in as well as to the overall state of the economy. As CPMs are public on Metas ad programs there should be more people who did a similar analysis how ad prices developed over time and especially recently. Can you help me find further resources that can confirm recent trends?

Moritz | InvestmentWiki.org — 3/23/2023 1:58 PM

Interesting, maybe we should watch the hearing of the TikTok Ceo before congress today. @Aron can you look up when exactly it will take place and create an entry into the calendar including the link to the livestream? Potential TikTok ban sends advertisers scrambling https://www.reuters.com/technology/potential-tiktok-ban-sends-advertisers-scrambling-2023-03-23/ (edited)

Reuters

Advertisers are seeking any assurances from TikTok, the viral app that helped usher in a wave of short-form video across social media, as the Chinese-owned company again faces a potential ban in the U.S. over national security concerns.

Aron — 3/23/2023 2:14 PM

SI=0%, I=8

Advantage+ (launched in August 2022) is significantly boosting Meta’s ad business in a way that it enables it to recover lost ground due to Apple privacy change.-Roberto Mendoza, associate director of global marketing agency iProspect, noted that " for every $1 spent on a website advertising campaign through Advantage+, clients were generating $7 in returns (nearly as high as before Apple’s privacy changes)." -David Herrmann, president of Herrmann Digital, estimates that his client has earned 20-30 per cent more revenue by using Advantage+ than other non-Advantage+ campaigns. -A senior executive notes that Meta has spend more money improving its AI capabilities than on Metaverse. -However, Advantage+ forces marketers to give up control of the campaigns. Subscribe to read

Subscribe to read | Financial Times

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

Aron — 3/23/2023 2:41 PM

SI=0%, I=7 -China said it would oppose a possible sale of TikTok while arguing that such a move will hurt investor confidence.

“The sale or divestiture of TikTok involves technology export, and administrative licensing procedures must be performed in accordance with Chinese laws and regulations, and the Chinese government will make a decision in accordance with the law,” Shu Jueting, Spokesperson of China’s Commerce Ministry said. “If the news is true, China will firmly oppose it,” she added

https://www.wsj.com/articles/china-says-it-opposes-a-forced-sale-of-tiktok-1a2ffc62 (edited)

WSJ

China Says It Opposes Forced Sale of TikTok

Beijing responded for the first time to a Biden administration demand that the short-video app divest itself from its Chinese parent or face a U.S. ban.

China Says It Opposes Forced Sale of TikTok

SI=0%, I=8

Advantage+ (launched in August 2022) is significantly boosting Meta’s ad business in a way that it enables it to recover lost ground due to Apple privacy change.-Roberto Mendoza, associate director of global marketing agency iProspect, noted that " for every $1 spent on a website advertising campaign through Advantage+, clients were generating $7 in returns (nearly as high as before Apple’s privacy changes)." -David Herrmann, president of Herrmann Digital, estimates that his client has earned 20-30 per cent more revenue by using Advantage+ than other non-Advantage+ campaigns. -A senior executive notes that Meta has spend more money improving its AI capabilities than on Metaverse. -However, Advantage+ forces marketers to give up control of the campaigns. Subscribe to read

Moritz | InvestmentWiki.org — 3/23/2023 7:59 PM

That’s very interesting and in line with the increase advertising targeting & effectiveness one can witness on the plattforms

Moritz | InvestmentWiki.org — 3/23/2023 8:12 PM

I have watched large past of Shou Zi Chew Tik Tok Ceos testimony so far and agree that congress is bi-partisan hostile with a lot of suggestive questions, statements and no interest to listen to his answers. Questioning in congress can be though but this is the most hostile hearing i saw so far during the last 7 years. Subscribe to read

Subscribe to read | Financial Times

News, analysis and comment from the Financial Times, the worldʼs leading global business publication

I have watched large past of Shou Zi Chew Tik Tok Ceos testimony so far and agree that congress is bi-partisan hostile with a lot of suggestive questions, statements and no interest to listen to his answers. Questioning in congress can be though but this is the most hostile hearing i saw so far during the last 7 years. Subscribe to read

Aron — 3/23/2023 8:27 PM

I also watched/listened to it and noticed the same. Could their intention be for CEO Shou Zi Chew to lose his cool? I think today’s hearing raises the odds of a U.S ban on TikTok given that; (1) Shou is evasive in most of his answers (2) He technically confirmed that Bytedance employees have access to TikTok user data. (3) The only defense he has is Project Texas, which majority of the congress believe it won’t solve the app’s security issues. (4) He contradicts himself when he says that CCP has no control over TikTok yet today’s statement from Spokesperson of China’s Commerce Ministry says otherwise. Also, he acknowledged that TikTok and Bytedance employees share similar stock option plans. (5) That video showcasing how TikTok promotes suicide was scary and could increase their desire to ban the app. (6) A divestiture/sale will require continuous monitoring by cfius which will be costly to taxpayers and may not be appealing to shareholders. (7) When Shou is asked whether Bytedance will be willing to divest TikTok, he said that ownership is not the issue here. (edited)

I also watched/listened to it and noticed the same. Could their intention be for CEO Shou Zi Chew to lose his cool? I think today’s hearing raises the odds of a U.S ban on TikTok given that; (1) Shou is evasive in most of his answers (2) He technically confirmed that Bytedance employees have access to TikTok user data. (3) The only defense he has is Project Texas, which majority of the congress believe it won’t solve the app’s security issues. (4) He contradicts himself when he says that CCP has no control over TikTok yet today’s statement from Spokesperson of China’s Commerce Ministry says otherwise. Also, he acknowledged that TikTok and Bytedance employees share similar stock option plans. (5) That video showcasing how TikTok promotes suicide was scary and could increase their desire to ban the app. (6) A divestiture/sale will require continuous monitoring by cfius which will be costly to taxpayers and may not be appealing to shareholders. (7) When Shou is asked whether Bytedance will be willing to divest TikTok, he said that ownership is not the issue here. (edited)

Moritz | InvestmentWiki.org — 3/23/2023 8:30 PM

great that you are taking notes. I am not sure what their objective is. This stance could be in preparation for a ban or forced sell of the app, but i am speculating here

great that you are taking notes. I am not sure what their objective is. This stance could be in preparation for a ban or forced sell of the app, but i am speculating here

Aron — 3/23/2023 8:33 PM

Yeah. But today’s statement from China’s Commerce department indicates that China could rather see TikTok being banned.

I also watched/listened to it and noticed the same. Could their intention be for CEO Shou Zi Chew to lose his cool? I think today’s hearing raises the odds of a U.S ban on TikTok given that; (1) Shou is evasive in most of his answers (2) He technically confirmed that Bytedance employees have access to TikTok user data. (3) The only defense he has is Project Texas, which majority of the congress believe it won’t solve the app’s security issues. (4) He contradicts himself when he says that CCP has no control over TikTok yet today’s statement from Spokesperson of China’s Commerce Ministry says otherwise. Also, he acknowledged that TikTok and Bytedance employees share similar stock option plans. (5) That video showcasing how TikTok promotes suicide was scary and could increase their desire to ban the app. (6) A divestiture/sale will require continuous monitoring by cfius which will be costly to taxpayers and may not be appealing to shareholders. (7) When Shou is asked whether Bytedance will be willing to divest TikTok, he said that ownership is not the issue here. (edited)

Moritz | InvestmentWiki.org — 3/24/2023 12:42 PM

Points 6 and 7 sound interesting and i did not watch them. Can you link the youtube video here and the exact time of the points 6 and 7? I think we could also create a sub-article in the Wiki Meta:Competition with TikTok under which we track all developments of TikTok and as a major point in the article the prospect of TikTok being banned with a lot of details including a link to the hearing in congress and your notes

[12:43 PM]

Or maybe it is better to just create a TikTok article and link this article in the competition section of Meta. (So we could link the article in other competition sections as well e.g. if we would invest in let’s say Pinterest again) (edited)

Facebook owner Meta planning lower bonus payouts for some employees…

Points 6 and 7 sound interesting and i did not watch them. Can you link the youtube video here and the exact time of the points 6 and 7? I think we could also create a sub-article in the Wiki Meta:Competition with TikTok under which we track all developments of TikTok and as a major point in the article the prospect of TikTok being banned with a lot of details including a link to the hearing in congress and your notes

Aron — 3/27/2023 10:24 AM

Point 6: min 3:49:44-3:54:54 Point 7: Min 3:25:45-3:27:08 Google Search TikTok - InvestmentWiki. (edited)

InvestmentWiki

TikTok

On March 23, 2023, TikTok CEO Shou Zi Chew was a witnessed in a full committee congress hearing titled, “TikTok: How Congress Can Safeguard American Data Privacy and Protect Children from Online Harms." We noticed that the congress was bi-partisan in grilling the CEO with most questions being suggestions and statements. In fact, in several occas…

Aron — 3/28/2023 12:49 PM

SI=0%, I=3 -Meta to lower bonus payouts from 85% to 65%. Facebook owner Meta planning lower bonus payouts for some employees- WSJ

Yahoo Finance

Employees of the social media giant, who get a rating of “met most expectations” in their 2023 year-end reviews, will receive a smaller percentage of bonus and restricted stock award due in March 2024, the WSJ report said. The bonus multiplier for that grade has been cut to 65% from 85% earlier, WSJ said, adding that the company will also resta…

Facebook owner Meta planning lower bonus payouts for some employees...

Aron — 4/5/2023 1:24 PM

SI=0%, I=5 -Meta will commercialize its proprietary AI by December. -Andrew Bosworth, Meta’s chief technology officer said that the technology can improve an ad’s effectiveness partly by telling the advertiser what tools to use in making it. -He said Mark Zuckerberg and Chief Product Officer Chris Cox, are spending most of time on it. Meta to debut ad-creating generative AI this year, CTO says - Nikkei Asia (edited)

Nikkei Asia

Meta to debut ad-creating generative AI this year, CTO says

Facebook parent expects tech to help clients better reach audiences, reduce costs

Aron — 4/5/2023 4:22 PM

SI=0%, I=8 -Piper Sandler Spring 2023 survey of Gen Z in U.S shows that TikTok declined as a favorite social media platform.

TikTok’s market share dropped to 37% from 38% in Fall 2022. It was followed by SNAP whose market share fell to 27% from 30% in Fall 2022. Third was Instagram whose market share grew to 23% from 20% in Fall 2022.-The report notes that U.S teens are not much interested Virtual Reality as only 14% of those who own it(29%) use it weekly. -Piper Sandler report surveyed 5,690 U.S. Teens. (1)https://www.pipersandler.com/news/piper-sandler-completes-45th-semi-annual-generation-z-survey-5690-us-teens (Spring 2023) (2)https://www.pipersandler.com/news/piper-sandler-completes-44th-semi-annual-generation-z-survey-14500-us-teens (Fall 2022) (edited)

Aron — 4/10/2023 6:22 PM

SI=0%, I=3 -Meta’s Segment Anything Model(SAM) AI can identify objects within an image and cut them out with a simple click. -SAM will be available for download under a non-commercial license. 12ft

Aron — 4/10/2023 11:26 PM

SI=0%, I=6 -Meta appoints Aaron Anderson as Chief Accounting Officer to replace Susan J.S. Taylor who notified the company of her intent to resign on January 27, 2023. -Anderson was PayPal’s SVP, Global Treasurer from 2021 to 2022. -He also served as Global Treasurer from 2020 to 2021, and Chief Accounting Officer from 2015 to 2020 in the same company. -Anderson holds an M.P.A. in Accounting and a B.S. and B.A. in Economics and Accounting from the University of Nebraska-Lincoln. Meta Platforms 8K Departure of Directors or Certain Officers | META 10 Apr 23

Meta Platforms 8K Departure of Directors or Certain Officers | MET…

Departure of Directors or Certain Officers, 8-K SEC filing by Meta Platforms on 10 Apr 23, 4:18pm

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Meta’s WhatsApp rolls out business payment tool in Brazil

SI=0%, I=5 -Meta will commercialize its proprietary AI by December. -Andrew Bosworth, Meta’s chief technology officer said that the technology can improve an ad’s effectiveness partly by telling the advertiser what tools to use in making it. -He said Mark Zuckerberg and Chief Product Officer Chris Cox, are spending most of time on it. Meta to debut ad-creating generative AI this year, CTO says - Nikkei Asia (edited)

Moritz | InvestmentWiki.org — 4/11/2023 5:30 PM

Hmm i don‘t like they are personally spending that much time on a brand new experimental tech team which pursues generative ai. I would have preferred more focus on the instrumental discovery ai topic

Moritz | InvestmentWiki.org started a thread: Feedback on importance of new officer. See all threads. — 4/11/2023 5:32 PM

Aron — 4/11/2023 6:38 PM

SI=0%, I=4 -Meta has rolled out its WhatsApp payment tool to SMBs in Brazil. -The tool will initially be available to WhatsApp Business clients. -WhatsApp API clients(large clients) will start using the tool in Future. -Already, WhatsApp API clients can use the tool in India(WhatsApp’s largest market) -The tool has been used to make payments between users in Brazil since 2021. Meta's WhatsApp rolls out business payment tool in Brazil

Yahoo Finance

Meta Platforms on Tuesday began rolling out its payments tool to small and medium-sized firms through its WhatsApp messaging platform in Brazil, part of Meta’s strategy to use the Brazilian market as a key test space for business messaging. The development of business messaging has become all the more urgent as Meta’s core advertising business …

Meta's WhatsApp rolls out business payment tool in Brazil

Aron — 4/17/2023 4:25 PM

SI=1% , I=6 -New Street Research downgraded Meta from Buy to Neutral.

“The Year of Efficiency re-rating is likely complete and while incremental cost cuts could help boost estimates, they are unlikely to impact the multiple materially,” the analysts said in a downgrade note.

-They also believe that its margins will be depressed in the mid-to-long-term due to high costs attributed to its AI and Metaverse investments. -For them to become more positive on the stock, they would like to see more adoption of Advantage+ and other new ad tech tools as well as easing time spent on competition from TikTok. Meta Platforms downgraded at New Street Research as stock re-rating 'likely over' By Investing.com

Meta Platforms downgraded at New Street Research as stock re-rating…

Meta Platforms downgraded at New Street Research as stock re-rating ‘likely over’

Meta Platforms downgraded at New Street Research as stock re-rating...

Aron — 4/17/2023 6:42 PM

SI=0%, I=8 -Meta is reportedly moving away from Metaverse and is now pitching for Reels and AI to advertisers. -While addressing the most recent layoffs, Zuckerberg mentioned Metaverse only twice but described AI development as Meta’s “single largest investment.” -In an effort to lure advertisers, Meta is now contented with advertisers spending the same level as last year instead of requiring them to spend 20% more like in the past. -Meta is also offering up to 25% discount to advertisers willing to spend a certain amount testing its ad features in Reels, according to an ad client that spends more than $200 million annually on Meta. https://www.theinformation.com/articles/meta-tries-to-lure-advertisers-with-reels-discounts-ai-tools Meta has reportedly stopped pitching advertisers on the metaverse | Business Insider Africa (edited)

Aron — 4/24/2023 4:23 PM

SI=0%, I=5 -Zuckerberg couldn’t firmly acknowledge that layoffs are over.

“I generally feel good about the position here, but just given the volatility, I don’t want to kind of promise that there won’t be future things in the future,” Zuckerberg said at a recent virtual employee Q&A meeting. “What I can say is that there’s nothing that we’re planning now, and if we do something, it’ll be sort of on that time frame.” He added

-He told employees that hiring will be in terms of net growth and that they shouldn’t expect employee growth of more than 1-2% year over year going forward. https://www.wsj.com/articles/mark-zuckerberg-says-meta-will-slow-hiring-wont-rule-out-future-layoffs-98653b09 (edited)

WSJ

WSJ News Exclusive | Mark Zuckerberg Says Meta Will Slow Hiring, Wo…

Facebook parent CEO Mark Zuckerberg said that approximately 4,000 employees, primarily in the company’s tech divisions, were affected by the latest layoffs.

WSJ News Exclusive | Mark Zuckerberg Says Meta Will Slow Hiring, Wo...

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Moritz | InvestmentWiki.org started a thread: Importance Increase. See all threads. — 4/24/2023 6:49 PM

Aron — 4/24/2023 8:47 PM

I=8 Four data points that point to an improvement in ad business:

William Blair survey of around 30 advertising budget decision-makers revealed that they expect to increase their advertising budgets in 2023 compared to 2022. Only 19% anticipate their budget to stay the same, while around 9% predict a decrease in their budget. Participants indicate they intend to distribute their ad budgets relatively evenly between search, social, and video advertising, which would give Meta Platforms exposure to about two-thirds of the budget.
Evercore ISI’s analysts, Mark Mahaney and team, in their research note indicated that META’s advertising performance has been showing signs of recovery, reaching levels similar to before the implementation of ATT (App Tracking Transparency), as Meta has already started to utilize artificial intelligence and machine learning in its ad targeting, as seen in the deployment of Performance Max and Advantage+. Additionally, Evercore pointed out that as advertisers are pressured to act more cost-conscious, ad budgets are increasingly shifting towards high ROI platforms, which benefits both Meta and Google/ Alphabet.
Piper Sandler research points that Meta’s CPMs price contraction in March has narrowed significantly versus January, with FB CPMs being down 11% YoY, versus 26% YoY in January, and Instagram CPMs being down only 3% YoY, versus 24% YoY in January.
TD Cowen proprietary survey of 2,500 users indicates that time spent on Facebook and Instagram is picking-up nicely.https://seekingalpha.com/article/4595916-meta-platforms-stock-may-continue-rally-after-q1-2023-earnings-reiterate-buy (edited)

Facebook, Instagram & Google Ads optimization platform

I=8 Four data points that point to an improvement in ad business:

William Blair survey of around 30 advertising budget decision-makers revealed that they expect to increase their advertising budgets in 2023 compared to 2022. Only 19% anticipate their budget to stay the same, while around 9% predict a decrease in their budget. Participants indicate they intend to distribute their ad budgets relatively evenly between search, social, and video advertising, which would give Meta Platforms exposure to about two-thirds of the budget.
Evercore ISI’s analysts, Mark Mahaney and team, in their research note indicated that META’s advertising performance has been showing signs of recovery, reaching levels similar to before the implementation of ATT (App Tracking Transparency), as Meta has already started to utilize artificial intelligence and machine learning in its ad targeting, as seen in the deployment of Performance Max and Advantage+. Additionally, Evercore pointed out that as advertisers are pressured to act more cost-conscious, ad budgets are increasingly shifting towards high ROI platforms, which benefits both Meta and Google/ Alphabet.
Piper Sandler research points that Meta’s CPMs price contraction in March has narrowed significantly versus January, with FB CPMs being down 11% YoY, versus 26% YoY in January, and Instagram CPMs being down only 3% YoY, versus 24% YoY in January.
TD Cowen proprietary survey of 2,500 users indicates that time spent on Facebook and Instagram is picking-up nicely.https://seekingalpha.com/article/4595916-meta-platforms-stock-may-continue-rally-after-q1-2023-earnings-reiterate-buy (edited)

Moritz | InvestmentWiki.org — 4/24/2023 9:41 PM

Pretty interesting insights. The only downside is that some of the original sources might not be publicly available. (I just tried to find revealbot/meta cpm by Piper Sandler but failed) Can you try to see if you can find the original source of any of the other insights?

@Moritz | InvestmentWiki.org

Pretty interesting insights. The only downside is that some of the original sources might not be publicly available. (I just tried to find revealbot/meta cpm by Piper Sandler but failed) Can you try to see if you can find the original source of any of the other insights?

Aron — 4/24/2023 9:43 PM

It seems Piper Sandler are using third party data-Revealbot Facebook advertising costs CPM (updated weekly) | Bïrch

Automate and scale your digital advertising for Facebook Ads and Google AdWords campaigns. Create, boost, manage ads, optimize budgets and bids using advanced automated rules to increase your ROAS.

It seems Piper Sandler are using third party data-Revealbot Facebook advertising costs CPM (updated weekly) | Bïrch

Moritz | InvestmentWiki.org — 4/24/2023 9:49 PM

Nice! Very good find. Can you try to dig into that? Why are costs falling in the last weeks?

Moritz | InvestmentWiki.org — 4/24/2023 11:09 PM

Some insights into the organizational setup of AI projects at Meta https://youtu.be/SGzMElJ11Cc?t=6596

Yann LeCun: Dark Matter of Intelligence and Self-Supervised Learnin…

Lex Fridman

Nice! Very good find. Can you try to dig into that? Why are costs falling in the last weeks?

Aron — 4/25/2023 12:04 AM

I couldn’t find a definite answer. But I would have expected CPMs to grow in April due to the Easter and Eid al-Fitr holiday. (1)However, Lebesgue had forecasted that the average CPM for prospecting Facebook ads is expected to be 12% lower in April 2023 than in March(no reason given). (2a)Lebesgue also notes that their data analysis of eCommerce businesses reveals a significant shift towards Advantage+ shopping campaigns in Q1 2023. (2b)Given that Advantage+ can reduce CPM by at least 12%, the falling costs can add to point 2a-that demand for Advantage+ is growing. (1, 2a)https://lebesgue.io/facebook-ads/navigating-facebook-ads-in-q1-2023-and-april-forecast-strategies-trends-and-tips-for-success/ (2b)Introducing new automation tools to help increase sales and drive growth | Meta for Business (2b)Best Practices for Meta Advantage+ Shopping Campaigns

I couldn’t find a definite answer. But I would have expected CPMs to grow in April due to the Easter and Eid al-Fitr holiday. (1)However, Lebesgue had forecasted that the average CPM for prospecting Facebook ads is expected to be 12% lower in April 2023 than in March(no reason given). (2a)Lebesgue also notes that their data analysis of eCommerce businesses reveals a significant shift towards Advantage+ shopping campaigns in Q1 2023. (2b)Given that Advantage+ can reduce CPM by at least 12%, the falling costs can add to point 2a-that demand for Advantage+ is growing. (1, 2a)https://lebesgue.io/facebook-ads/navigating-facebook-ads-in-q1-2023-and-april-forecast-strategies-trends-and-tips-for-success/ (2b)Introducing new automation tools to help increase sales and drive growth | Meta for Business (2b)Best Practices for Meta Advantage+ Shopping Campaigns

Moritz | InvestmentWiki.org — 4/25/2023 11:45 AM

Why would you have expected growing CPM due to Easter and Eid al-Fitr? Just a feeling or was there an observable increase in the last years? I think we should try to understand the different Meta ad programs like Advantage+ and other ones. See how large those programs are in % of Metas revenue, which kind of results they offer for advertisers and in which direction things are developing

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Why would you have expected growing CPM due to Easter and Eid al-Fitr? Just a feeling or was there an observable increase in the last years? I think we should try to understand the different Meta ad programs like Advantage+ and other ones. See how large those programs are in % of Metas revenue, which kind of results they offer for advertisers and in which direction things are developing

Aron — 4/25/2023 12:05 PM

During the holiday season, the demand for ads is high as consumer spend is also high. That pushes the CPMs up as Meta notes:

“Campaigns that run during a holiday or a major sporting event may cost more than campaigns that run during lower-traffic times of the year.”

See posts, photos and more on Facebook.

Aron

It seems Piper Sandler are using third party data-Revealbot Facebook advertising costs CPM (updated weekly) | Bïrch

Aron — 4/25/2023 12:18 PM

Gupta Media provides daily performance of CPM. https://lookerstudio.google.com/reporting/44d0af1a-8eed-4050-b49a-fe2f508dc68c/page/p_rl265bhtzc Founded 21 years ago, Gupta Media has tracked the performance of over 60,000 campaigns and 10s of billions of impressions. https://www.guptamedia.com/services (edited)

Gupta Media provides daily performance of CPM. https://lookerstudio.google.com/reporting/44d0af1a-8eed-4050-b49a-fe2f508dc68c/page/p_rl265bhtzc Founded 21 years ago, Gupta Media has tracked the performance of over 60,000 campaigns and 10s of billions of impressions. https://www.guptamedia.com/services (edited)

Moritz | InvestmentWiki.org — 4/25/2023 12:52 PM

Pretty cool. Everytime we find new sources which gives us insights into a company we should capture them into the Wiki to help other researchers and make sure we forget about them. I did this in the example here: https://www.investmentwiki.org/wiki/Meta_Platforms:Sources What stands out to me is that Gupta Numbers are significantly lower than Revealbot ones. Can you determine which of the two (or neither) is the most accurate representation? When going back in time there are no indications that CPMs are particular high in April. They are high though in Late November/Early December in preparation of Christmas. (edited)

InvestmentWiki

Meta Platforms:Sources

Return to: Meta Platforms List of all sources on Meta

Aron — 4/25/2023 6:16 PM

SI=0%, I=5 -Meta was late to adopt AI-friendly hardware. -“Significant gap” exists on AI software, internal memo says.

“We have a significant gap in our tooling, workflows and processes when it comes to developing for AI. We need to invest heavily here,” said the memo, written by new head of infrastructure Santosh Janardhan

-Custom AI chip scrapped, new more ambitious chip planned. -Generative AI is now compounding company’s capacity crunch. https://12ft.io/proxy?q=https%3A%2F%2F12ft.io%2F

Pretty cool. Everytime we find new sources which gives us insights into a company we should capture them into the Wiki to help other researchers and make sure we forget about them. I did this in the example here: https://www.investmentwiki.org/wiki/Meta_Platforms:Sources What stands out to me is that Gupta Numbers are significantly lower than Revealbot ones. Can you determine which of the two (or neither) is the most accurate representation? When going back in time there are no indications that CPMs are particular high in April. They are high though in Late November/Early December in preparation of Christmas. (edited)

Aron — 4/25/2023 7:32 PM

Yeah, Gupta numbers are almost half what is given by Revealbot. But from what I have read, it seems Revealbot numbers come close to what’s cited by news outlets. It also comes close to what is given by Northbeam, another ad attribution platform that has tracked $5B ad spend across its brands so far. For instance, in Q4 2022, Northbeam said average facebook CPM was $13.35. This comes close to what’s given on that chart. https://www.businessinsider.com/how-much-amazon-google-facebook-youtube-tiktok-snap-ads-cost-2023-2?r=US&IR=T https://www.northbeam.io/ (edited)

https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#Alphabet:~:text=-100%-,Alphabet[edit%20|%20edit%20source],Ad%20spend%20is%20seeing%20stabilization.,-Small%20Competitor%20Results (edited)

Why would you have expected growing CPM due to Easter and Eid al-Fitr? Just a feeling or was there an observable increase in the last years? I think we should try to understand the different Meta ad programs like Advantage+ and other ones. See how large those programs are in % of Metas revenue, which kind of results they offer for advertisers and in which direction things are developing

Aron — 4/25/2023 8:22 PM

-Advantage+ shopping campaigns was launched in August 2022 and aims at simplifying the process of creating ads through the use of AI.

In just a few steps, an advertiser sets their business objective, target country, advertising creative, and budget. After that, they let our AI systems do the rest: optimizing to find the right person, with the right message, and at the right time to deliver a strong ROI. By leveraging AI and automation, it helps advertisers get smarter – faster – on which campaigns are driving results.

-A test done by Meta with 31 advertisers found that “on average Advantage+ shopping campaigns improved cost per acquisition (CPA) by 17% and return on ad spend (ROAS) by 32% compared to business-as-usual only campaigns.” https://www.facebook.com/business/news/advantage-shopping-campaigns-boosts-holiday-performance -It seems it has received positive adoption. The only complain against it is that the data available to advertisers is limited. ⁠meta⁠ (edited)

Aron — 4/25/2023 11:11 PM

I=8 Alphabet released its Q1 results today. Here are the results: -You Tube advertising revenue was $6.6 billion(-2.62% y/y) as expected. -Google Ad Revenue was $54.55 billion(-0.2% y/y) as expected.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud, " Alphabet CEO Sundar Pichai said. " In YouTube, we saw signs of stabilization in ad spend on a sequential basis. We continue to prioritize growth in Shorts engagement where we are encouraged by progress in monetization." CFO Ruth Porat said in the earnings call.

-Regarding the macro environment, Ruth Porat said that it remains uncertain.

" In terms of the operating environment, our results in the first quarter reflected ongoing headwinds due to a challenging economic environment and the outlook remains uncertain. Foreign exchange headwinds have moderated, and we expect less of a foreign exchange headwind in the second quarter based on current spot rates, " She said in the earnings call.

Moritz | InvestmentWiki.org — 4/26/2023 8:28 AM

I think we should collect informations about different Programms and data like cpm in a „Meta Platforms:Advertising“ article

Aron — 4/26/2023 10:28 AM

Insights for Meta: -Meta ad revenue will mostly likely beat or come in-line with estimates. -Foreign exchange headwinds to have less impact on Meta earnings(Meta had projected a 2% y/y impact). -Ad spend is seeing stabilization. https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#Alphabet

InvestmentWiki

2023 Q1

Moritz | InvestmentWiki.org — 4/26/2023 11:49 AM

To add to this: Ad spend is going to remain uncertain as many companies are very focused on shorter term profitability amidst current macro uncertainty. So we have to be careful not to get overconfident. In terms of industry specific insights: In Google Advertising, Search and Other, revenues grew 2% year-over-year, reflecting an increase in the travel and retail verticals, offset partially by a decline in finance as well as in media and entertainment.

Aron — 4/26/2023 1:56 PM

I=8 Summary of Tinuiti Digital Ads Benchmark Report Q1 2023: Meta Platforms -Meta ad spend rebounded from three straight quarters of decline to being flat year-over-year in Q1 2023. -Meta impressions rose 42% y/y, helped by Reels. -Meta CPM fell 30% y/y versus 22% drop in Q4. -The rebound in Meta ad spend was aided by the adoption of Advantage+shopping campaigns. Instagram -Instagram ad spend grew 15% in Q1 versus a 3% decline in Q4 due to the “the strongest impression growth observed since Q2 2020.” -Instagram impression grew from 15% in Q4 to 45% in Q1. -The Reels ad placement continues to rapidly grow, and accounted for 10.8% of all Instagram impression in Q1 2023, up from 2.5% in Q1 2022. -Instagram CPM declined 20% y/y (Q4:-16%), the steepest ever declined observed in Tinuiti advertisers, contributed by “the growth of Reels impression share since the newer format carries a much lower CPM than more established placements like Feed.” -Instagram Reels CPM was 47% lower than Feed in Q1. -Instagram spend share of total Meta ad investment was nearly at the same level as in Q4. Facebook -Facebook ad impression rose from 23% in Q4 2022 to 42% in Q1 2023. -Facebook ad spend declined 4% y/y versus 7% decline in Q4. -Facebook CPM fell 32% y/y, the biggest decline observed in the last four years for Tinuiti advertisers. -Facebook accounted for 72% of total Meta ad investment in Q1 2023, nearly same share as in Q4 2022. https://tinuiti.com/content/research/digital-ads-benchmark-report-q1-2023/ (edited)

Moritz | InvestmentWiki.org — 4/26/2023 4:44 PM

I think the report is an overall mixed indicator: Postive:

TikTok CPMs grew 44% Y/Y. That could mean medium term higher CPMs for Reels as well.(To do: Compare current CPMs of Reels and Tiktok @Aron)
Strong performance of Instagram on impression growth with only moderate CPM declines leads to higher Instagram ad spend overall. Negative:
Tinuiti numbers on Alphabet indicated a 9% U.S. ad spend increase, but Alphabet results came in at only 3.5%.
Metas Flat Y/Y on U.S. ad spend could indicates flat revenue on a company level of 27,908Million which is slightly ahead the 27,600Million market expectations for Q1 2023, but given the discrepancy with Alphabet numbers it could also hint at a miss.
Meta Comps for impressions growth are easy esp. for Facebook which makes them less impressive.
Comps for CPM have been hard. CPM is now at the same level as two years ago and not crazy low. They could therefore have further downside.

Moritz | InvestmentWiki.org — 4/26/2023 5:13 PM

58.Revision:* I just looked up Tinuiti Meta Q3 und Q4 2022 reports (1)(2). They had Meta U.S. ad spent at -7% and -8% respectively. Meta U.S. Revenue came in better at -2.5% and flat respectively. (3) At the same time they had Alphabet U.S. ad spend (4) at 15% in Q3 and 10% in Q4 2022, while actual results came in worse at 12% and 6% respectively. Given that (short) history of underpresenting Meta and overpresenting Google i think there is some likelihood that results come in again better than their 0 growth prediction. I wouldn’t want to bet on that though. It’s not a priority now but i think we should have an article with tables which tracks Tinuiti insights on different companies and compares predictions with actuals. (1) https://tinuiti.com/content/research/meta-ads-benchmark-report-q3-2022/ (2) https://tinuiti.com/content/research/digital-ads-benchmark-report-q4-2022/ (3) https://s21.q4cdn.com/399680738/files/doc_financials/2022/q4/Earnings-Presentation-Q4-2022.pdf (4) https://tinuiti.com/content/research/google-ads-benchmark-report-q3-2022/ (edited)

Aron — 4/26/2023 9:15 PM

I couldn’t find recent data, but VaynerMedia 2022 figures published by Financial Times in January 2023 indicate that TikTok’s CPM is almost half that of Instagram Reels. https://12ft.io/proxy?q=https%3A%2F%2Fwww.ft.com%2Fcontent%2F2e62de44-7877-4ec3-8eec-68dd7788b9dc

Magaly — 4/26/2023 9:26 PM

This is not good for competition. I guess is good to see tik tok CPMs growing and Instagram falling.

Moritz | InvestmentWiki.org — 4/26/2023 10:25 PM

Hey Guys, i am considering to create an “our predictions” product shortly before earnings that would let the community know how we are thinking about the impending earnings + sharpen our focus to gather strongest arguments. Ideally we would publish this days/weeks in advance and keep collecting insights until the last moment. Here is how it could look it. (There would be links from the arguments to the sources in the Wiki) What do you think about it? For Metas earnings. Any further arguments to consider especially bearish ones? @Magaly @Aron

Moritz | InvestmentWiki.org — 4/26/2023 10:34 PM

Apart from that we would obviously publish our valuation model incl. price target to give a longer term perspective. The valuation model is by far the more important product and our earnings prediction is more of a side product

[10:40 PM]

Two more bear arguments:

High expectations. People are bullish going into this making the likelihood of disappointment higher
Potential negative ad outlook

Aron — 4/26/2023 10:46 PM

pretty cool. We should also expect Meta FX headwind to have moderated during the quarter judging from Alphabet’s earnings. Meta had projected FX headwind to have a 2% y/y impact on its revenue in the current quarter. My bearish case is that Meta seems to have exhausted revenue growth areas at the moment. Advantage+ is replacing revenue lost due to Apple’s privacy change while the likes of Metaverse, WhatApp monetization haven’t picked up. Similarly, despite Reels seeing growth, they are driving down CPM, and in an environment where ads demand is slowing, I think high CPM is needed to drive revenue growth-So, I would say Tinuiti report was also bearish. There have also been rumours that Meta is allowing advertisers to skip committing the 20% prospecting ad budget when using Advantage+, which means that Advantage+ may not be driving growth at the moment but just trying to establish itself. (edited)

Magaly — 4/26/2023 10:49 PM

Yes, as I mentioned to you, my only worry is that expectations could be so high that even being good results, they will not be met. If valuation would be lower it would not care, but meta have rallied more than most.

[10:55 PM]

I am not sure if you saw the recent meta glitch btw, I hear about it yesterday https://www.cnbc.com/2023/04/26/meta-suffered-a-major-facebook-ad-glitch-clients-asking-about-refunds.html

CNBC

Major Facebook ad glitch has advertisers asking about refunds

The glitch caused many companies to fund Facebook ad campaigns that were essentially ineffective.

Moritz | InvestmentWiki.org — 4/26/2023 10:55 PM

Yeah you knower know what funds expect and sometimes there is selling even if targets are hit. My main argument that the rally might continue which i forgot to include to the table is the current (justified) betting on Ai.

[10:59 PM]

Markets closed for me (i can only trade 2 minutes before closing as of now)

[10:59 PM]

Primetime…

Magaly — 4/26/2023 10:59 PM

I agree with thart but I think AI is more of a longer term trend. I see meta also higher than now, but I am not sure if its due for a correction short term

[11:00 PM]

Which could be ok for you, sometimes I am not sure how active or passive you want to be (edited)

Moritz | InvestmentWiki.org — 4/26/2023 11:06 PM

Yes would be ok for me. If i wouldn’t have a significantly higher price target i would not be invested in the way i am

[11:06 PM]

but earnings is usually the last time to make any adjustments before a potential large move

[11:07 PM]

As i said before i see the price target above 300$

Message could not be loaded

Magaly — 4/26/2023 11:09 PM

But what is you timeframe to reach this?

Moritz | InvestmentWiki.org — 4/26/2023 11:10 PM

Next 1-2 years already if reels develop how i expect them to

[11:10 PM]

maybe even way faster. It really depends on adoptions and if we have a hard landing

[11:11 PM]

Aron — 4/26/2023 11:12 PM

SI=10%+, I=10 Meta revenue, EPS and Q2 outlook tops analysts estimate. Here are the results: -Revenue was $28.65 billion(+3% y/y), slightly above analyst estimate of $27.61 billion(-1.1% y/y).

EPS was $2.2 versus $2.03 estimate.-Average Revenue per User (ARPU) was $9.62 versus $9.30 expected. -Facebook Daily active users(DAUs) came in 2.04 billion versus 2.01 billion estimate. -Facebook Monthly active users was 2.99 billion as expected. -Family of Apps revenue was $28.31 billion versus $26.88 billion estimate. -Reality Labs revenue was 339 million, below $660 million estimate. -Reality Labs losses was $3.992 billion in-line with -$3.95 billion estimate. -Meta gave Q2 Revenue outlook of $29.5-$32 billion versus $29.48 billion estimate. -It also lowered FY 2023 total expenses to the range of $86-90 billion from $89-$95 billion given in March. -FY 2023 capital expenditure outlook remains unchanged at $30-33 billion to reflect its “ongoing build out of AI capacity to support ads, Feed and Reels, along with an increased investment in capacity for our generative AI initiatives.” -Family of Apps ad impressions " increased by 26% year-over-year and the average price per ad decreased by 17% year-over-year." -Meta said it expects Reality Labs losses to increase y/y in 2023.

“We had a good quarter and our community continues to grow,” said Mark Zuckerberg, Meta founder and CEO. “Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision.” He added

https://s21.q4cdn.com/399680738/files/doc_news/Meta-Reports-First-Quarter-2023-Results-2023.pdf (edited)

Moritz | InvestmentWiki.org — 4/27/2023 11:24 AM

Strong results. Revenue came in above Managements Guidance of $28.5billion and EPS beat analyst expectations by 10%. If we declude restructuring charges Meta’s EPS would be $0.44 higher at $2.64. Adjust EPS for reality labs investments stands at $4.17. (Making this adjustment is not practical or realistic because Meta will not scale back on Metaverse and a part of Meta’s AI work like FAIR is under Reality Labs but it gives us on indication of Metas underlying profitability) Importantly Q2 2023 Guidance predicts 2.3%-11% y/y revenue growth. On the fundamental level usage is increasing with Family of Apps daily active people standing at 3.02billion (+5% y/y) and monthly active at 3.81billion (+5%y/y) and more than 2billion Reels are getting shared each day. Good job @Aron and @Magaly on providing important and correct insights on general developments and macro that made the decision easier not to reduce the position before the earnings. On the product side a very exiting new product which i did not see coming are AI chat agents for businesses. If more businesses can make click-to-chat offers work by handling the work load with generative ai chat agents and more and more conversation between businesses and costumers runs through metas platforms it would grant Meta a unique and extremely strong competitive position. I will probably update with more details on the quarter from the conference call, but the company seems to be operating well esp. in the important field of ai. My price target (current worth) of Meta remains above $300 (Probably between $330 and $380) but i would need further work to clarify those targets. For now the most important aspect is that it is comfortably above the current price with some margin of safety. The long term value of Meta could be significantly higher ($1000+) than the current worth depending how the AI revolution develops. Given the strong results and the already very large size of the position i am not buying and am again deciding against reducing it. https://s21.q4cdn.com/399680738/files/doc_financials/2023/q1/META-Q1-2023-Earnings-Call-Transcript.pdf

Aron — 4/27/2023 8:18 PM

SI=0%, I=5

"If you take Zuckerberg at his word that there’s still a lot more to do, I think estimates are still too low. "Wedgewood’s David Rolfe said The stock could end up at $400 in 2024 and EPS at around $20

Meta Q1 earnings were a ‘tour de force’, says Wedgewood’s David Rolfe

CNBC Television

[8:19 PM]

Aron — 4/27/2023 9:22 PM

-Meta results were better than what RBC were predicting -Brad Erickson says Meteverse is Meta’s free-call on the stock. -Meta ad results shows that as the consumer continues to be resilient M/M, Q/Q, ad spend is slowly trickling back better than feared(from min 3:15) https://www.youtube.com/watch?v=_I-me4uE5p8

We’re bullish on Meta’s core business, says RBC Capital Markets’ Br…

CNBC Television

Aron — 4/27/2023 9:32 PM

85.Doug Anmuth-J.P. Morgan* -Meta is accelerating top-line growth which drives a clear path towards mid-teens revenue growth in the back half. -Meta is really making significant efficiencies creating room to invest long-term. -Pointed out that capex will go up in 2024 due to investment in generative AI. -He said you don’t have to be a believer in Metaverse to be bullish on Meta stock. https://www.youtube.com/watch?v=BUKVmaBr9QA (edited)

Investors don’t need to be bullish on the metaverse to like Meta, s…

CNBC Television

Aron — 4/27/2023 9:48 PM

I=7

“Tech is much stronger than many think.” Jefferies Senior Analyst Brent Thill said “I think they gained share back. I don’t think advertisers are doing back -flips and spending money like crazy .I think what’s happening is that Meta has improved their ROI,” he added. (min 3:39) “I think they are well-positioned in AI.” He noted (min 6:46)

Meta: 'The common theme here is that tech is stronger than most peo…

Yahoo Finance

Moritz | InvestmentWiki.org — 4/27/2023 11:30 PM

Both Snap -17% and Pinterest -9% deeply in the red

Aron — 4/27/2023 11:33 PM

I=6 Snap reported numbers that missed analysts estimates in all areas except EPS . -Snap’s revenue grew -7% year-over-year to $989 million, below analysts estimate of $1.01 billion(-4.7%). -Its adjusted EPS was 1 cents versus -1 cents expected. -Global daily active users were 383 million versus 384 million expected. -Average revenue per user was $ $2.58 versus $2.63 expected. -It gave Q2 outlook that came in below analysts estimates. They are forecasting revenue in Q2 to decline 6% year-over-year to $1.04 billion versus analysts estimate of $1.10 billion(+1.85% year-over-year). https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#cite_note-:21-36 (edited)

Aron — 4/27/2023 11:54 PM

I=6 Pinterest topped revenue and earnings estimate but gave weak outlook for Q2. Here are the results; -Pinterest revenue grew 5% year-over-year to $603 million, above analysts estimate of $592 million(+3%). -EPS was $0.08, above analysts estimate of $0.02. -The company is guiding for revenue growth in Q2 to come in-line with the growth in Q4 2022 and Q1 2023 amid hopes that it will be better. -Nevertheless, Pinterest forecasts non-GAAP operating expenses to grow low teens on a percentage basis quarter-over-quarter.

“In Q1, we grew our business globally through improved content relevance, shoppability, and by delivering strong results for our advertisers. Today, we’re taking meaningful steps towards expanding our ads business by opening up third-party ad demand on Pinterest, starting with Amazon as our first partner." CEO Bill Ready said

InvestmentWiki

2023 Q1

Moritz | InvestmentWiki.org — 4/28/2023 12:11 AM

Thanks for the update. What is the reason Pinterest is falling in your opinion?

Aron — 4/28/2023 12:26 AM

Muted outlook. The company said its revenue growth in Q2 will grow at the same level as Q4(+3.6% y/y) and Q1(+4.8% y/y). Street expected growth of around 6% y/y in Q2.

Moritz | InvestmentWiki.org — 4/28/2023 12:39 AM

Probably they expected a beat as well

Aron — 4/28/2023 10:20 AM

yeah

May 1, 2023

Aron — 5/1/2023 7:06 PM

SI=-1%, I=4 -Meta platforms is looking to raise $7 billion in a five-part bond deal. -The bond’s longest portion, a 40-year security, could yield 215 basis points over Treasuries. -Meta plans to use the proceeds to finance capital expenditures, fund share buybacks and for acquisitions or investments. https://www.bloomberg.com/news/articles/2023-05-01/meta-said-to-target-7-billion-in-its-second-blue-chip-bond-sale (edited)

May 3, 2023

Aron — 5/3/2023 5:09 PM

SI=0%, I=3 -Meta announced new features that make it easier for users to discover and personalize Facebook Reels recommendations. -Now when you see a Reel, you can tap the three-dot menu at the bottom of the video player and select either “Show More” or “Show Less.” https://techcrunch.com/2023/05/02/meta-rolls-out-new-discovery-and-personalization-controls-for-facebook-reels/

Aron — 5/5/2023 8:30 PM

SI=0%, I=3 -Meta hires 10 former Graphcore engineers in a bid to improve how its data centers handle AI work.

“We recently welcomed a number of highly-specialized engineers in Oslo to our infrastructure team at Meta. They bring deep expertise in the design and development of supercomputing systems to support AI and machine learning at scale in Meta’s data centers,” said Jon Carvill, the Meta spokesperson.

-Meta did not say what the engineers will be working on. https://www.cnbc.com/2023/05/05/meta-platforms-scoops-up-ai-networking-chip-team-from-graphcore.html -Graphcore is a British company that develops accelerators for AI. -It has $682 million in funding and 251-500 employees according to Crunchbase.

Aron — 5/9/2023 6:06 PM

SI=0%, I=3 -Meta expands WhatsApp in-app payments to Singapore-based users. -However, at the moment, the payment feature will only be available to a few businesses. https://techcrunch.com/2023/05/08/whatsapp-now-allows-singapore-based-users-to-pay-businesses-within-the-app/

TechCrunch

Ivan Mehta

WhatsApp now allows Singapore-based users to pay businesses within …

WhatsApp is launching the ability for users to pay business through a chat in Singapore in partnership with Stripe.

Aron — 5/9/2023 7:42 PM

SI=0%, I=6 -Meta is testing a new Reels payment model that “pays creators based on the performance of their public reels, not the earnings of ads on their reels.”

“We’re learning through our tests that payouts tied to performance are better at balancing the needs of everyone,” Meta wrote “Many variables outside of creators’ control have traditionally influenced their ad earnings, such as how many ads have already been shown to the person viewing their content or whether there’s a relevant ad to deliver that viewer." It added

-Meta started testing Ads on Facebook Reels last year as a way for creators to earn money for creating and sharing engaging public reels. -It’s now inviting thousands more creators to join its updated tests including creators who previously participated in the Reels Play bonus program on Facebook. -Meta added that it will begin testing ads on Instagram Reels in the coming weeks.

“We’re still early in our work with Ads on Reels, and we’ll continue to monitor these tests closely as we work toward the best solution for creators, advertisers and our apps broadly,” Meta wrote

Evolving and Expanding Ads on Reels | Meta for Creators

Today, we’re updating and expanding our Ads on Reels test, making it possible for more creators to earn money for their engaging reels. Learn more about how to get access and start earning.

Aron — 5/10/2023 10:50 PM

SI=0%, I=7 -Meta’s Global Business Group head Nicola Mendelsohn indicated that advertising market is seeing stabilization.

“What I’m hearing is that there’s a stability out there when it comes to how [digital advertisers] are seeing things now,” She said “So we’ve gone through a real period of real fluctuation, lots of changes that people couldn’t have envisaged, but I think people are now more comfortable and confident in terms of what those uncertainties are, and they’re factoring them in,” She added

-She reiterated that Reels is one of the fastest growing products.

“[Reels is] one of our fastest growing products, and what we saw just in the last handful of months was a doubling of the amount of Reels being shared every day to 2 billion Reels being shared,” she said. “That’s people commenting and sharing and discussing and debating and really enjoying the content that they’re seeing. A lot of that has been powered by the investments that we’ve been making in artificial intelligence and machine learning,” She added.

-Mendelsohn also pointed messaging as a key ad opportunity.

“We’re seeing that one of the products that have that we call [Click to Message] actually enables advertisers to start a conversation in one of the individual threads,” she said. “That now has a runway of $10 billion.”

-She said that Advantage+, which is AI powered is helping advertisers who want to reduce costs to reach the targeted customers. https://finance.yahoo.com/news/why-metas-digital-ad-numbers-are-trouncing-competitors-right-now-nicola-mendelsohn-155924039.html https://www.youtube.com/watch?v=YV_y2lqFRDk

Aron — 5/12/2023 11:27 AM

SI=0%, I=4 -Meta announced an AI sandbox that will enable advertisers create alternative copies of Facebook and Instagram ads. -The sandbox will also enable advertisers to create different backgrounds of images through text prompts. -Additionally, it will crop images into correct sizes across Meta’s platforms. -These features are only available to select few advertisers at the moment but will be expanded to other advertisers in July. -The company also announced several Advantage+ updates and said that in the coming months they will begin introducing features that improve audience reach and promote dynamic video ads. https://www.cnbc.com/2023/05/11/meta-announces-ai-sandbox-and-updates-to-meta-advantage.html (edited)

Aron — 5/16/2023 9:38 PM

SI=0%, I=2 -As part of its “year of efficiency” plans, Meta is spinning of Kustomer, a customer service startup it bought in 2020 for roughly $1 billion. -Kustomer is reported valuation of $250 million. https://www.cnbc.com/2023/05/16/meta-spins-out-customer-service-startup-kustomer-amid-cost-and-efficiency-push.html

Aron — 5/18/2023 9:42 PM

SI=0%, I=5 -Meta has build custom silicon chips to help with AI and Video-processing tasks. -Its vice president of infrastructure Alexis Bjorlin said the improved performance resulting from these chips will justify the huge costs associated with building them. -For instance, Meta Scalable Video Processor (MSVP) chip is used to process and transmit videos while cutting down on energy requirements as Bjorlin noted “there was nothing commercially available” that could be used to transmit and process 4 billion videos a day as efficiently as Meta wanted. -The other processor is the Meta Training and Inference Accelerator (MTIA), which is intended to handle “inference” and is aimed at powering Meta’s ad recommendation algorithms. -Meta added that it has also completed the final phase of its supercomputer known as Research SuperCluster (RSC), which will train Meta’s LLaMA language model. -These new hardware will eventually be used to operate tasks associated with Metaverse. https://www.cnbc.com/2023/05/18/meta-pulls-the-curtain-back-on-its-ai-chips-for-the-first-time.html https://about.fb.com/news/2023/05/metas-infrastructure-for-ai/ (edited)

Aron — 5/19/2023 7:56 PM

SI=0%, I=4 -VaynerX Chairman Gary Vaynerchuk has this to say about Facebook Reels;

“Facebook Reels right now is one of the best underpriced attention places for the brands.” “Still opportunities to get organic reach.” “Meta haven’t thrown their full ad capabilities against it, when this happens there is an opportunity for videos to get more reach.”

https://finance.yahoo.com/video/twitter-tiktok-meta-gary-vaynerchuks-154929739.html -VaynerX generated $143 million in revenue in 2021 and had 437 employees. https://www.campaignlive.com/article/agency-report-cards-2022-vaynermedia/1752455 (edited)

Aron — 5/19/2023 9:47 PM

SI=0%, I=4 -Instagram is planning to release a twitter-like app in summer. -People familiar with it said the company is currently testing the app with celebrities and influencers. https://www.bloomberg.com/news/articles/2023-05-19/instagram-readies-twitter-competitor-for-summer-release (edited)

Aron — 5/22/2023 12:01 PM

SI=1-2%, I=8 -Irish Data Protection Commission announced that it has fined Meta platforms €1.2 billion ($1.3 billion) for transferring user data to the U.S, where it will be exposed to the prying eyes of the American security services. -The commission has also asked Meta Platforms to stop " any future transfer of user data to the U.S" within 5 months. -Additionally, Meta Platforms has been asked to stop “the unlawful processing, including storage, in the US” of such data within 6 months. -The ban was widely expected though its impact has been reduced by the transition phases included in the decision as well as the possibility of a new EU-US data flows agreement that could be operational by June of this year. https://www.bloomberg.com/news/articles/2023-05-22/meta-fined-record-1-3-billion-in-eu-over-us-data-transfers -The ruling applies only to Facebook and not WhatsApp or Instagram. -The decision could force Meta to delete vast amounts of EU user data. -Meta said they will appeal the decision and that no immediate disruption to Facebook services in the EU is expected. https://www.nytimes.com/2023/05/22/business/meta-facebook-eu-privacy-fine.html -Meta said during the latest earnings call that " roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries." https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#:~:text=Regulatory%20Environmennt[edit,suspension[13]. -Meta platforms had warned last year that if a new transatlantic data transfer framework doesn’t materialize, it will be forced to pull its Facebook and Instagram services from EU. https://www.bloomberg.com/news/articles/2022-07-29/meta-repeats-threat-it-may-pull-facebook-instagram-from-europe (edited)

SI=1-2%, I=8 -Irish Data Protection Commission announced that it has fined Meta platforms €1.2 billion ($1.3 billion) for transferring user data to the U.S, where it will be exposed to the prying eyes of the American security services. -The commission has also asked Meta Platforms to stop " any future transfer of user data to the U.S" within 5 months. -Additionally, Meta Platforms has been asked to stop “the unlawful processing, including storage, in the US” of such data within 6 months. -The ban was widely expected though its impact has been reduced by the transition phases included in the decision as well as the possibility of a new EU-US data flows agreement that could be operational by June of this year. https://www.bloomberg.com/news/articles/2023-05-22/meta-fined-record-1-3-billion-in-eu-over-us-data-transfers -The ruling applies only to Facebook and not WhatsApp or Instagram. -The decision could force Meta to delete vast amounts of EU user data. -Meta said they will appeal the decision and that no immediate disruption to Facebook services in the EU is expected. https://www.nytimes.com/2023/05/22/business/meta-facebook-eu-privacy-fine.html -Meta said during the latest earnings call that " roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in EU countries." https://www.investmentwiki.org/wiki/Meta_Platforms:Quarterly_Results/2023_Q1#:~:text=Regulatory%20Environmennt[edit,suspension[13]. -Meta platforms had warned last year that if a new transatlantic data transfer framework doesn’t materialize, it will be forced to pull its Facebook and Instagram services from EU. https://www.bloomberg.com/news/articles/2022-07-29/meta-repeats-threat-it-may-pull-facebook-instagram-from-europe (edited)

Moritz | InvestmentWiki.org — 5/22/2023 4:02 PM

Do you think the decision is better or worse than expected?

@Moritz | InvestmentWiki.org

Do you think the decision is better or worse than expected?

Aron — 5/22/2023 4:06 PM

I think it’s better. The transition period gives Meta platforms time to appeal. Also, the new transatlantic data transfer agreement between U.S and E.U is expected to be agreed on by mid of this year, that’s earlier than the end date for transition. (edited)

Aron — 5/23/2023 6:07 PM

SI=0%, I=3 -Meta will sell Giphy to Shutterstock for $53 million cash deal. -Meta acquired Giphy, a platform for searching for and using animated images in messaging apps in 2020 for $315 million. -The news comes after the U.K regulatory authority ordered Meta to divest Giphy in 2022, citing possible anti-competitive effects. https://www.cnbc.com/2023/05/23/meta-sells-giphy-to-shutterstock-at-a-loss-in-a-53-million-deal.html

https://seekingalpha.com/news/3975530-meta-gains-as-scrappier-company-looks-to-pivot-to-future

SI=0%, I=3 -Meta will sell Giphy to Shutterstock for $53 million cash deal. -Meta acquired Giphy, a platform for searching for and using animated images in messaging apps in 2020 for $315 million. -The news comes after the U.K regulatory authority ordered Meta to divest Giphy in 2022, citing possible anti-competitive effects. https://www.cnbc.com/2023/05/23/meta-sells-giphy-to-shutterstock-at-a-loss-in-a-53-million-deal.html

Moritz | InvestmentWiki.org — 5/24/2023 2:56 PM

I saw some hyped up click baits around that transaction but complete agree with you on the importance rating. The loss is marginal for Meta and Meta is able to continuously use Giphy as a costumer

Aron — 5/26/2023 8:51 PM

SI=0%, I=4 In an effort to avoid further U.K antitrust woes, Meta has given assurances on how it uses ad data to boost its Facebook Marketplace, which include; -Enabling advertisers to opt-out of their advertising data which is used to develop the marketplace. -Meta will train staff to ensure that they don’t use advertiser data when creating new products for the U.K market that will affect its competitors. The Competition and Markets Authority (CMA) has until June 26 to consult on these commitments and if they are satisfied, they will close investigation on Meta platforms. https://techcrunch.com/2023/05/26/to-avert-more-uk-antitrust-woes-meta-to-limit-how-it-uses-ad-data-to-boost-facebook-marketplace/

Aron — 5/26/2023 9:25 PM

SI=0%, I=5 -Speaking about the recent layoffs, CEO Mark Zuckerberg said he is hoping the company will move toward more stability and less bureaucracy.

“So it’s not like we’re going to end up in exactly the place that we were before because that wasn’t my goal. I wanted to get to a scrappier place,” he said

-He noted that one of the key goals is a "stronger technology company that can build better products faster.”

“And the second is about improving our financial performance so we can sustain our ambitious, long-term investments and vision in what I continue to expect to be a difficult environment,” he added

Aron — 6/1/2023 3:26 PM

SI=0%, I=6 Summary of Meta platforms AGM; -The AGM was marred with concerns ranging from governance, dual-class share structure to social responsibility. -There will be fewer layoffs and less hiring. -Zuckerberg noted that developing AI efficient tools will enhance productivity. -Metaverse investments will be long-term. https://finance.yahoo.com/video/meta-shareholder-takeaways-cost-cutting-200946988.html https://east.virtualshareholdermeeting.com/vsm/web?pvskey=META2023 (edited)

Aron — 6/1/2023 6:05 PM

SI=0%, I=3 -CEO Mark Zuckerberg reveals Quest 3, whose price will start from $499. -Meta Quest 3 will be 40% thinner than the previous device and will have color-mixed reality. -It will also have better displays and resolution. -Meta dominates the AR/VR market with 80% market share, having sold around 80% of the 8.8 million headsets sold in 2022-according to research firm IDC. https://finance.yahoo.com/news/metas-zuckerberg-unveils-quest-3-141344850.html (edited)

https://www.bloomberg.com/news/articles/2023-06-01/meta-office-workers-to-return-three-days-per-week-this-fall

SI=0%, I=3 -CEO Mark Zuckerberg reveals Quest 3, whose price will start from $499. -Meta Quest 3 will be 40% thinner than the previous device and will have color-mixed reality. -It will also have better displays and resolution. -Meta dominates the AR/VR market with 80% market share, having sold around 80% of the 8.8 million headsets sold in 2022-according to research firm IDC. https://finance.yahoo.com/news/metas-zuckerberg-unveils-quest-3-141344850.html (edited)

Moritz | InvestmentWiki.org — 6/1/2023 9:19 PM

I think the device looks impressive esp given that it has mixed reality, is significantly thinner and comes at a relatively cheap price point. Would rate this at an 8. https://www.instagram.com/reel/Cs809N-BUJ7/?igshid=ZWQyN2ExYTkwZQ== (edited)

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Aron — 6/2/2023 10:35 AM

SI=0%, I=4 -Meta asks employees to come to office three days per week beginning from September, that’s according to people familiar with the matter. -Employees already working remotely will remain distributed.

“We’re committed to distributed work, and we’re confident people can make a meaningful impact both from the office and at home,” a Meta spokesperson said. “We’re also committed to continuously refining our model to foster the collaboration, relationships and culture necessary for employees to do their best work”

Aron — 6/2/2023 12:06 PM

SI=0%, I=4 -Meta tests blocking Canadian users from accessing news content in Instagram and Fecebook. -The bock is in response to a proposed bill that will require tech giants to pay publishers for reporting the content online. -The Online News Act is being discussed in the senate and could be passed this month. -Meta said it’s ready to permanently block news content for Canadian Facebook and Instagram users if the bill is passed. -The temporary block will affect 1-5% of its 24 million Canadian users. https://finance.yahoo.com/news/meta-tests-blocking-news-content-025737021.html

Moritz | InvestmentWiki.org — 6/5/2023 9:23 PM

Apple is annoucing it’s AR headset: https://www.youtube.com/live/GYkq9Rgoj8E?feature=share

WWDC 2023 — June 5 | Apple

Apple

Moritz | InvestmentWiki.org — 6/5/2023 10:23 PM

I:10+ Stunned by apples presentation of their AR device called Vision Pro. I highly recommend everyone watching it. For Meta i think this is great news:

Apples device starts at 3499$ while the Metaquest 3 starts at 499$. If Apple manages to raise awareness for AR, Metaquest 3 sales should go up quite a bit.
The Vision Pro will serve as the ultimate test if people want to use AR. In case that interest and adoption is not there it can help Meta to reduce it’s investment in the field.
Meta is able to learn from Apple and has to develop less concepts itself. In case that some features are fundamental for adoption Meta can concentrate on developing them as well. As a Metaquest 2 user three large bottlenecks for adoption i am currently seeing is eye strain, wearing comfort and isolation in VR. It will be interesting to see how much Apple solved them and if their new product is as great as promised.

Aron — 6/8/2023 2:26 PM

SI=0%, I=4 -Meta will soon launch channels for its WhatsApp messaging service. -WhatsApp Channels will enable its admins to send text, photos, videos, stickers and polls to their followers. -Admins won’t be able to add followers to the Channels while followers won’t be able to reply to the messages. -At the moment, the Channels won’t be end-to-end encrypted in order to reach a large audience. -Zuckeberg recently told CNBC that WhatsApp will be the “next chapter” for Meta platfoms. https://www.cnbc.com/2023/06/08/meta-to-debut-new-channels-broadcasting-tool-for-whatsapp.html

CNBC

Meta to debut new Channels broadcasting tool for WhatsApp

Meta announced a new broadcasting feature dubbed Channels for its WhatsApp messaging service intended for people and organizations to send one-way messages.

Magaly — 6/9/2023 3:36 AM

Zuckerberg podcast https://youtu.be/Ff4fRgnuFgQ

Mark Zuckerberg: Future of AI at Meta, Facebook, Instagram, and Wha…

Lex Fridman

Aron — 6/9/2023 11:11 AM

SI=0%, I=6 Yesterday, Meta platforms held an employee meeting, here is a summary of what was discussed; -Mark Zuckergerg touted incredible breakthroughs the company has seen in AI. -Meta executives showcased how AI can help design 3D visuals for Metaverse. -They also said that they plan to launch a service that will enable Instagram users to modify photos through text prompts and share them in Instagram’s app stories. -Meta also plans to enable WhatsApp and Instagram users to engage with AI Chatbots in future as a form of entertainment. -Regarding the launch of Twitter rival, Chief product officer Chris Cox confirmed it saying they plan to launch it “as soon as we can.” -Zuckerberg is not worried about VR headset competition from Apple. https://www.investmentwiki.org/wiki/Meta_Platforms:_Employee_Meetings/_Menlo_Park_2023#:~:text=June%208%2C%202023,themselves%2C"%20he%20noted. (edited)

Zuckerberg podcast https://youtu.be/Ff4fRgnuFgQ

Moritz | InvestmentWiki.org — 6/13/2023 3:44 PM

Wow pretty long. Did you watch parts of it? If yes did anything stood out to you?

Meta releases ‘human-like’ AI image creation model

Wow pretty long. Did you watch parts of it? If yes did anything stood out to you?

Magaly — 6/13/2023 7:25 PM

I did not. Not really interested in Zuckerberg haha

ThreadMark Zuckerberg Interview1 Message ›

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Aron — 6/13/2023 8:31 PM

SI=0%, I=3 -Meta releases I-JEPA, a human-like AI model that potentially has the ability to analyze and finish uncompleted images accurately compared to other AI models. -This model uses background knowledge it has about the world to finish the images. https://finance.yahoo.com/news/meta-releases-human-ai-image-171319516.html

Yahoo Finance

Meta Platforms said on Tuesday that it would provide researchers with access to components of a new “human-like” artificial intelligence model that it said can analyze and complete unfinished images more accurately than existing models. The model, I-JEPA, uses background knowledge about the world to fill in missing pieces of images, rather than…

Meta releases 'human-like' AI image creation model

Moritz | InvestmentWiki.org started a thread: Mark Zuckerberg Interview. See all threads. — 6/14/2023 4:50 PM

June 16, 2023

Aron — 6/16/2023 5:27 PM

SI=0%, I=5 -Meta platforms wants companies to freely use and make money out of its Open AI. -According to the Information, Meta is working on ways to commercialize its next version of open-source large language models (LLMs). -LLM powers chatbots like ChatGPT and Bard. -The move will indirectly benefit its own AI development. https://www.gadgetsnow.com/tech-news/how-meta-plans-to-boost-its-ai-development-and-challenge-google-openai/articleshow/101042751.cms

Gadgets Now

meta: How Meta plans to boost its AI development and challenge Goog…

A report by The Information said that “company Mark Zuckerberg and his deputies want other companies to freely use and profit from new artificial intelligence software Meta is developing.” The report also said that this decision “could have big implications for other AI developers and businesses that are increasingly adopting it.”

Aron — 6/20/2023 6:49 PM

SI=0%, I=4 -Meta’s new generative AI model, Voicebox, can replIcate voices in six languages. -However, Meta is not releasing it to the public due to potential risks of misuse.

“There are many exciting use cases for generative speech models, but because of the potential risks of misuse, we are not making the Voicebox model or code publicly available at this time,” it said in a post. “While we believe it is important to be open with the AI community and to share our research to advance the state of the art in AI, it’s also necessary to strike the right balance between openness with responsibility,” it added

https://voicebox.metademolab.com/ (edited)

VoiceBox

Voicebox: Text-Guided Multilingual Universal Speech Generation at Scale

Moritz | InvestmentWiki.org — 6/21/2023 4:48 PM

If we would indeed find weakness in SMBs i wonder why the likes of Meta did so well during recent earnings. What’s your take @Magaly ?

Magaly — 6/21/2023 7:57 PM

What do you mean did so well? I see earnings still low compare to the peak and negative growth y/y, and revenue basically not growing. In line with SMBs pulling back a bit? https://www.macrotrends.net/stocks/charts/META/meta-platforms/eps-earnings-per-share-diluted (edited)

Meta Platforms EPS - Earnings per Share 2010-2023 | META

Meta Platforms annual and quarterly earnings per share history from 2010 to 2023. Earnings per share can be defined as a company’s net earnings or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options and warrants. Meta Platforms EPS for the quarter ending…

@Moritz | InvestmentWiki.org

If we would indeed find weakness in SMBs i wonder why the likes of Meta did so well during recent earnings. What’s your take @Magaly ?

Magaly — 6/21/2023 8:10 PM

Earnings from that survey look to have had a rebound higher recently, which could explain Meta beating estimates or doing relativity better. But are heading lower again.

What do you mean did so well? I see earnings still low compare to the peak and negative growth y/y, and revenue basically not growing. In line with SMBs pulling back a bit? https://www.macrotrends.net/stocks/charts/META/meta-platforms/eps-earnings-per-share-diluted (edited)

Moritz | InvestmentWiki.org — 6/21/2023 9:01 PM

5.7% revenue growth in the U.S. & Canada y/y (1) which was above expectations and their highest revenue in Q1 ever while there is a contraction in both sales and earnings for small businesses according to NFIB. It might have something to do with the rebound in earnings of SMBs which could be caused by them being able to rise prices in the past? Overall i really dislike NFIB data as the survey simply asks if earnings are “higher” or “lower” and the only data point that we have is that apparently around 65% of businesses must have responded “lower” on earnings while 35% responded “higher”. Strangely enough that index was never positive. (1)https://s21.q4cdn.com/399680738/files/doc_financials/2023/q1/Earnings-Presentation-Q1-2023.pdf

@Moritz | InvestmentWiki.org

5.7% revenue growth in the U.S. & Canada y/y (1) which was above expectations and their highest revenue in Q1 ever while there is a contraction in both sales and earnings for small businesses according to NFIB. It might have something to do with the rebound in earnings of SMBs which could be caused by them being able to rise prices in the past? Overall i really dislike NFIB data as the survey simply asks if earnings are “higher” or “lower” and the only data point that we have is that apparently around 65% of businesses must have responded “lower” on earnings while 35% responded “higher”. Strangely enough that index was never positive. (1)https://s21.q4cdn.com/399680738/files/doc_financials/2023/q1/Earnings-Presentation-Q1-2023.pdf

Magaly — 6/21/2023 9:11 PM

Where are you measuing 5.7% growth? I get less than 3%.

Where are you measuing 5.7% growth? I get less than 3%.

Moritz | InvestmentWiki.org — 6/21/2023 9:23 PM

It’s directly on slide 2 under user geography breakdown

@Moritz | InvestmentWiki.org

It’s directly on slide 2 under user geography breakdown

Magaly — 6/21/2023 9:27 PM

I see now, you are only taking advertising. Could be that was due an increase in prices, but I dont expect this to continue. You would probably need additional quarters to asses that Meta is really rebounding. I agree NFIB is not the best, but I am not sure there is better data than that, at least up to date or longer timeframes. Not that I have found

I see now, you are only taking advertising. Could be that was due an increase in prices, but I dont expect this to continue. You would probably need additional quarters to asses that Meta is really rebounding. I agree NFIB is not the best, but I am not sure there is better data than that, at least up to date or longer timeframes. Not that I have found

Moritz | InvestmentWiki.org — 6/21/2023 9:31 PM

Yep a price increase or more placement of advertising. It’s certainly worth revisiting this (edited)

June 23, 2023

Aron — 6/23/2023 10:12 AM

SI=0%, I=4 -Canada’s senate passed a bill yesterday that will require Meta and Google to pay news outlets for content shared on the platforms. -Meta confirmed that it will comply with the bill by ending news availability on Facebook and Instagram for Canadian users.

“We have repeatedly shared that in order to comply with Bill C-18, which was passed today in Parliament, content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada,” said Lisa Laventure, head of communications for Meta in Canada.

https://finance.yahoo.com/news/canadian-senate-passes-bill-requiring-211255685.html -Meta platforms has 24 million users in Canada https://www.bnnbloomberg.ca/meta-to-test-blocking-news-on-instagram-facebook-for-some-canadians-1.1928031

SI=0%, I=4 -Canada’s senate passed a bill yesterday that will require Meta and Google to pay news outlets for content shared on the platforms. -Meta confirmed that it will comply with the bill by ending news availability on Facebook and Instagram for Canadian users. > “We have repeatedly shared that in order to comply with Bill C-18, which was passed today in Parliament, content from news outlets, including news publishers and broadcasters, will no longer be available to people accessing our platforms in Canada,” said Lisa Laventure, head of communications for Meta in Canada. https://finance.yahoo.com/news/canadian-senate-passes-bill-requiring-211255685.html -Meta platforms has 24 million users in Canada https://www.bnnbloomberg.ca/meta-to-test-blocking-news-on-instagram-facebook-for-some-canadians-1.1928031

Moritz | InvestmentWiki.org — 6/23/2023 1:27 PM

It will be interesting to follow closely how things play out here as other governments include the u.s. government is discussing a similar bill. My take is that it will hurt news publishers more than meta as newspublishers used social media to attract more paying costumers.

Yep a price increase or more placement of advertising. It’s certainly worth revisiting this (edited)

Magaly — 6/23/2023 7:44 PM

will you take Meta profits if it gets to $300?

will you take Meta profits if it gets to $300?

Moritz | InvestmentWiki.org — 6/23/2023 7:45 PM

It depends on our findings of the above mentioned topic, the state of the economy, our assessment of small businesses etc

[7:46 PM]

What are the major resistance lines you are seeing?

It depends on our findings of the above mentioned topic, the state of the economy, our assessment of small businesses etc

Magaly — 6/23/2023 8:07 PM

I just think it could reach it before their is more certainty about that.

What are the major resistance lines you are seeing?

Magaly — 6/23/2023 8:09 PM

305 and 340 maybe. It basically has had none since $225

305 and 340 maybe. It basically has had none since $225

Moritz | InvestmentWiki.org — 6/23/2023 8:28 PM

What about current levels? Do you think appox. at $287 there could be a resistence at well?

I just think it could reach it before their is more certainty about that.

Moritz | InvestmentWiki.org — 6/23/2023 8:34 PM

Unless we find some strong red flags or data that suggest negative surprises i will be hesitant taking profits. AI seems to be a very strong theme and a wave that can surfed for some additional times as businesses get reevaluated. Additionally i believe we are only now beginning to approach more reasonable and neutral valuations levels from a fundamental point of view. Meta is not ultra cheap anymore but also not crazy expensive.

@Moritz | InvestmentWiki.org

What about current levels? Do you think appox. at $287 there could be a resistence at well?

Magaly — 6/23/2023 8:41 PM

Yes, around that, is the end of the crazy gap that happened in 2022. But is probably weaker.

Unless we find some strong red flags or data that suggest negative surprises i will be hesitant taking profits. AI seems to be a very strong theme and a wave that can surfed for some additional times as businesses get reevaluated. Additionally i believe we are only now beginning to approach more reasonable and neutral valuations levels from a fundamental point of view. Meta is not ultra cheap anymore but also not crazy expensive.

Magaly — 6/23/2023 8:42 PM

What metric do you use for your valuation assessment? I have heard fears of a AI bubble, like the internet one. But short term this would mean crazy returns too.

What metric do you use for your valuation assessment? I have heard fears of a AI bubble, like the internet one. But short term this would mean crazy returns too.

Moritz | InvestmentWiki.org — 6/23/2023 9:02 PM

My main valuation metric is always P/E. I am expecting some bullish catalysts for EPS of Meta in the near term from things like

Effects of cost cutting reaching the button line
Higher ad impressions as both Instagram and FB are getting better through AI and short form video and people spend more time in them.
Higher ad engagements due to already incredibly good matching of advertisers with people which i expect to improve further (Short form video is perfect for rapidly training an ai on what people like)-> Higher ad prices → Raising margins for Meta → Higher EPS. If you take Metas Metaverse investments into account, which they could reduce at any time Meta EPS is already very high. I think i wrote something about that shortly after the release of last quarters numbers. Additionally i am very bullish on the monetization potential of Apps like Whatsapp. (Probably wrote something about that before as well + a few more bullish reasons from september last year can be found in old sheets like here (1) or in the Wiki.) Overall we need to improve a lot in communicating the investment thesis and eventually displaying it in a compelling way to the community so it is good that you are asking questions. Eventually i even want to attempt do model certain impacts and play around with numbers more like
How much exact eps impact are we expecting from cost cuts
How will Metas margin develop in different ad impression and pricing scenariosetc. The closer we are getting to valuations i consider approximately neutral, the more important is this. (1) https://docs.google.com/spreadsheets/d/1UNG7ddMmZnKZK-Q0ePI1yPcKyutXw05gb3xVpS3jDJ8/edit#gid=595611303&range=A104

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[9:04 PM]

The great thing for transparently + effectively communicating investment reasons is also that false assumptions can be discovered and challenged way easier

My main valuation metric is always P/E. I am expecting some bullish catalysts for EPS of Meta in the near term from things like

Effects of cost cutting reaching the button line
Higher ad impressions as both Instagram and FB are getting better through AI and short form video and people spend more time in them.
Higher ad engagements due to already incredibly good matching of advertisers with people which i expect to improve further (Short form video is perfect for rapidly training an ai on what people like)-> Higher ad prices → Raising margins for Meta → Higher EPS. If you take Metas Metaverse investments into account, which they could reduce at any time Meta EPS is already very high. I think i wrote something about that shortly after the release of last quarters numbers. Additionally i am very bullish on the monetization potential of Apps like Whatsapp. (Probably wrote something about that before as well + a few more bullish reasons from september last year can be found in old sheets like here (1) or in the Wiki.) Overall we need to improve a lot in communicating the investment thesis and eventually displaying it in a compelling way to the community so it is good that you are asking questions. Eventually i even want to attempt do model certain impacts and play around with numbers more like
How much exact eps impact are we expecting from cost cuts
How will Metas margin develop in different ad impression and pricing scenariosetc. The closer we are getting to valuations i consider approximately neutral, the more important is this. (1) https://docs.google.com/spreadsheets/d/1UNG7ddMmZnKZK-Q0ePI1yPcKyutXw05gb3xVpS3jDJ8/edit#gid=595611303&range=A104

Magaly — 6/23/2023 9:30 PM

But meta PE ratio is now even higher than 2021 So for your bullish points, you do support your thesis, in things that could happen based on your theory, but not certain But to consider bearish reasons as real risks you do need data that shows you something is happening for sure. Is that a bias that you have? Or there is a real reason for that? (edited)