Meta misses. Is this stock just a little closer to a bottom?
Trading at 13x next year, do not bet against Mark Zuckerberg as a wartime CEO.
Dan feels like Meta is just a little bit closer to the bottom.
Trading at 13x next year, do not bet against Mark Zuckerberg as a wartime CEO.
Dan feels like Meta is just a little bit closer to the bottom.
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00:00 Yeah, so it rallied, I think, into last Thursday when Snap reported and Friday was down 40%.
00:05 The stock had rallied 20% off those lows in June.
00:08 So here it is now.
00:09 I mean, that guidance, there was nothing really good about it.
00:11 I think the good news here, if you're a shareholder, I am a shareholder, is that they're getting
00:16 closer, right, to probably bottoming out, at least with that spend.
00:20 And really, I guess the concern about the pivot, you know, the good news is, and Julia
00:24 just mentioned that 3% DAU growth, that's daily active users, nearly to about 2 billion,
00:30 right, with monthly active users at 3 billion.
00:32 When they get that pivot right, right, they're going to be able to monetize those users if
00:37 they don't lose a whole heck of a lot of them.
00:39 So to me, I think the pivot is obviously, they knew, they saw some things coming, right,
00:44 with some of their core products here.
00:46 When they talk about reels and they really talk about what that is, what they've turned
00:50 Instagram is, I don't think Kylie Jenner loves it so much, but they're making it more and
00:55 more like TikTok.
00:56 So to me, yeah, the story's messy.
00:58 There's been some management that left.
01:00 But the one thing I'll say is that trading about 13 times next year, when you think about
01:05 that, you think about that cash position, and you think about something that somebody
01:08 who is the head of product at Instagram for years said this to me last week.
01:11 He said, listen, Mark Zuckerberg was not a well-liked peacetime CEO, but don't bet against
01:17 him as a wartime CEO.
01:18 And I thought that was really interesting to me.
01:20 So I don't know, this one, it feels like it's just a little bit closer to being at a bottom.