Author argues META remains expensive due to advertiser pricing competition from TikTok and flattening user growth.
META — AVOID The author argues Meta is still expensive because its revenue growth relies on raising ad prices, but TikTok provides advertisers a cheaper alternative. User growth is flattening with 3.5B users, limiting upside. He also doubts Meta can build profitable AI products given its AR spending record.
Meta's key way of growing revenue so far has been to raise the ads prices. This can't go on forever, because advertisers have now a solid alternative for their campaigns with Tiktok.