Ok so I just be missing something obvious here but I don’t get the moat with this stock?
98% of their revenue comes from advertisement on their platforms. Not good. There is revenue growth but there’s only so many ads and so many people you can show ads to. Metaverse failed and they wasted $73B. Cool.
Raybans are a bright spot but haven’t moved revenue all THAT much. Apple and Google plan on releasing their own glasses soon. Yes, I know there is a market for all 3 to exit but METAs Rayban revenue not exploding when they are essentially the only players in the market rn is not good.
AI. Ok so They are spending billions on compute but what are they going to do with it? Google and Tesla are using compute for self driving cars and Gemini which will power Siri. I see robotaxis adding to revenue eventually although Waymo is not profitable yet. NVDA is Using AI for drug discovery and autonomous vehicles. But what is META doing with it?
How is all of this AI spend going to increase and diversify revenue. Are we just going to see AI ads everywhere and AI content on IG and FB?
My biggest gripe with META is the fact that people can easily just become bored with their platforms. Who’s to say in 10 years Instagram and FB aren’t cool anymore? Humans are always flocking to the next best thing. We’ve seen how Snapchat died.
What am I missing?