Meta is a cash cow and should act accordingly

November 9, 2022
< 1 minute

By Sorin Anagnoste

Strategy | Business Models | Tech

“I want to take accountability for these decisions and for how we got here,” said CEO and cofounder Mark Zuckerberg in a statement after laying off 11,000 employees (13% of its workforce).

Like I said in other posts (e.g. 1, 2), META’s role in the metaverse should be minimal, if not close to zero. Large companies are TGV trains, they go from point A to point B, not from A to C.

Meta’s moat is not and will be not around the metaverse, but around:

  1. Algorithms – for better search and recommendations (moving away from deterministic models based on CPU power to probabilistic models based on GPU)
  2. AI – for content generation (that’s why they invest billions in CAPEX and very few companies afford this; not even Bytedance/TikTok)
  3. Messenger & Whatsapp – growing and monetizing these apps
  4. Instagram – the app’s potential is far from being reached
  5. Ad network – working around Apple’s App Tracking Transparency (ATT) policy in order to see the ad conversions. This link is now broken.

Meta is a cash cow and should act accordingly.

You’re welcome, Mark!


Facebook and Meta logo

Source: TechCrunch


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