The company is on a transforma

2022-02-24

The company is on a transformation journey and the share price will be suppressed. That said, it is a cash generating business which makes it valuable at this climate. I believe the share price will rebound and reward shareholders but need to have holding power for at least 12 months.

Buy in tranche because I also don't know when is bottom as market is generally bearish.

Meta Platforms Shares Can Sink as It Avoids Renting Out Data Centers

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

breAkdaWn
2022-02-24
breAkdaWn
true it's on a journey. a virtual one. with no airlines, no trucks, no EVs, just wear eye mask!!
- ANNIEPLTAN:
  That's the future ...stay invested and be rewarded. I believe in them.

Leave a comment

{"i18n":{"language":"en_US"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":9030888809,"tweetId":"9030888809","gmtCreate":1645682010017,"gmtModify":1676534053171,"author":{"id":3585644829136692,"idStr":"3585644829136692","authorId":3585644829136692,"authorIdStr":"3585644829136692","name":"ANNIEPLTAN","avatar":"https://static.tigerbbs.com/ceab3c533f66796aa2bca8a10b0fd5e1","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":2,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body><p>The company is on a transformation journey and the share price will be suppressed.&nbsp; That said, it is a cash generating business which makes it valuable at this climate.&nbsp; I believe the share price will rebound and reward shareholders&nbsp;but need to have holding power for at least 12 months.&nbsp;&nbsp;</p><p>Buy in tranche because I also don't know when is bottom as market is generally bearish.</p></body></html>","htmlText":"<html><head></head><body><p>The company is on a transformation journey and the share price will be suppressed.&nbsp; That said, it is a cash generating business which makes it valuable at this climate.&nbsp; I believe the share price will rebound and reward shareholders&nbsp;but need to have holding power for at least 12 months.&nbsp;&nbsp;</p><p>Buy in tranche because I also don't know when is bottom as market is generally bearish.</p></body></html>","text":"The company is on a transformation journey and the share price will be suppressed. That said, it is a cash generating business which makes it valuable at this climate. I believe the share price will rebound and reward shareholders but need to have holding power for at least 12 months. Buy in tranche because I also don't know when is bottom as market is generally bearish.","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/9030888809","repostId":1195778366,"repostType":2,"repost":{"id":"1195778366","kind":"news","pubTimestamp":1645668088,"share":"https://www.laohu8.com/m/news/1195778366?lang=&edition=full","pubTime":"2022-02-24 10:01","market":"us","language":"en","title":"Meta Platforms Shares Can Sink as It Avoids Renting Out Data Centers","url":"https://stock-news.laohu8.com/highlight/detail?id=1195778366","media":"investorplace","summary":"Since disappointing earnings sent shares down 20% early this month, analysts have been predicting a ","content":"<html><head></head><body><p>Since disappointing earnings sent shares down 20% early this month, analysts have been predicting a comeback for Meta Platforms (NASDAQ:FB). But that’s not happening with FB stock.</p><p>Shares were due to open Feb. 22 at $203.50. The post-earnings plunge had it at $240 per share. The market cap is down to $560 billion. The price-to-earnings (P/E) ratio is below 15.</p><p>This is not about macroeconomic headwinds or Ukraine. Snap (NYSE:SNAP) is up 8.7% this month. Twitter (NYSE:TWTR) is down, but by just 3.5%. The problem is the children want ByteDance’s TikTok. The company’s user base is aging. On top of that, its approach to its data centers is questionable at best.</p><p>Mark Zuckerberg may be the Henry Ford of social technology. But that’s a double-edged sword for FB stock.</p><h2>Meta Risks Losing the Metaverse Race</h2><p>Like the Ford Motor Company (NYSE:F) founder, Zuckerberg controls his company’s stock. But he is getting into a market war he cannot win.</p><p>Zuckerberg has put billions into capital spending this year, mostly for software engineering his vision of the “metaverse.” That’s a combination of augmented reality (AR), virtual reality (VR), gaming and finance, all layered on top of existing cloud-based systems.</p><p>The metaverse is the biggest technology vision since the Web was spun a quarter-century ago. It will require new clients, a lot of bandwidth and very low latency. It’s the job of a decade, not just a year or two. Meta’s hardware is not designed to handle it.</p><p>Meta is a “Cloud Czar” because it has hyperscale data centers around the world. These centers were bought with cash flow. Once opened, they drop the company’s hardware and scaling costs to near-zero.</p><p>This is what makes Meta so profitable. You can count the companies sharing this advantage on one hand – Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN).</p><h2>Meta Platforms’ Data Center Problem</h2><p>The problem for Meta is where the centers are located. There are 15 built or under construction in the U.S. Additionally, three are in Europe and one is in Singapore.</p><p>But many of the company’s fans are in the Global South: India, Southeast Asia, Africa, and South America. Many people in these areas use Facebook, Instagram and WhatsApp to connect to global economies and discussions. They’re not getting the metaverse.</p><p>We’re already finding Cloud Czars stumbling under the load of cloud gaming, which is a first step toward the metaverse. For example, Google’s Stadia is quietly going away.</p><p>The new buzzword is the Cloudless Cloud, and smaller, “edge” data centers closer to customers for high bandwidth, low latency applications.</p><h2>FB Stock Is Losing Its Fans</h2><p>Zuckerberg refuses to rent cloud capacity. He has continually ignored government warnings about how the company handles data. The CEO is offering former politician Nick Clegg as “vice-president for global affairs.”  That means Clegg is supposed to sell Zuckerberg’s plans. It doesn’t mean he’s making decisions.</p><p>For the other Cloud Czars, the problem of too much capacity is solved by renting the excess. Amazon, Microsoft and Google are fighting to host the world’s data. Meta isn’t.</p><p>Just supporting other, similar software applications with storage and bandwidth would be enough to please Wall Street. But Zuckerberg won’t do it.</p><p>That’s why, even at its current price, analysts are tip-toeing away from FB stock. 11 of 44 analysts tracked by Tipranks are now in the “hold” camp.</p><h2>The Bottom Line on FB Stock</h2><p>Meta Platforms can still be saved — but not if Zuckerberg persists in ignoring the danger all around it.</p><p>For now, he seems intent on doing just that. He sees his broken product model as a marketing problem. He refuses to let other companies use his data centers. He’s defiant. He controls the board, and he controls the stock.</p><p>Mark Zuckerberg is just 37. But history shows Ford fell hard after its initial success. General Motors (NYSE:GM) passed it with a more organized, even bureaucratic approach. Ford himself wound up as an isolationist, out of step with his time.</p><p>Without World War II and the more-professional leadership of its founder’s grandson, Henry Ford II, the company may have failed. Meta Platforms still might.</p></body></html>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meta Platforms Shares Can Sink as It Avoids Renting Out Data Centers</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeta Platforms Shares Can Sink as It Avoids Renting Out Data Centers\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-02-24 10:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2022/02/meta-platforms-shares-can-sink-as-it-avoids-renting-out-data-centers/><strong>investorplace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Since disappointing earnings sent shares down 20% early this month, analysts have been predicting a comeback for Meta Platforms (NASDAQ:FB). But that’s not happening with FB stock.Shares were due to ...</p>\n\n<a href=\"https://investorplace.com/2022/02/meta-platforms-shares-can-sink-as-it-avoids-renting-out-data-centers/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://investorplace.com/2022/02/meta-platforms-shares-can-sink-as-it-avoids-renting-out-data-centers/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1195778366","content_text":"Since disappointing earnings sent shares down 20% early this month, analysts have been predicting a comeback for Meta Platforms (NASDAQ:FB). But that’s not happening with FB stock.Shares were due to open Feb. 22 at $203.50. The post-earnings plunge had it at $240 per share. The market cap is down to $560 billion. The price-to-earnings (P/E) ratio is below 15.This is not about macroeconomic headwinds or Ukraine. Snap (NYSE:SNAP) is up 8.7% this month. Twitter (NYSE:TWTR) is down, but by just 3.5%. The problem is the children want ByteDance’s TikTok. The company’s user base is aging. On top of that, its approach to its data centers is questionable at best.Mark Zuckerberg may be the Henry Ford of social technology. But that’s a double-edged sword for FB stock.Meta Risks Losing the Metaverse RaceLike the Ford Motor Company (NYSE:F) founder, Zuckerberg controls his company’s stock. But he is getting into a market war he cannot win.Zuckerberg has put billions into capital spending this year, mostly for software engineering his vision of the “metaverse.” That’s a combination of augmented reality (AR), virtual reality (VR), gaming and finance, all layered on top of existing cloud-based systems.The metaverse is the biggest technology vision since the Web was spun a quarter-century ago. It will require new clients, a lot of bandwidth and very low latency. It’s the job of a decade, not just a year or two. Meta’s hardware is not designed to handle it.Meta is a “Cloud Czar” because it has hyperscale data centers around the world. These centers were bought with cash flow. Once opened, they drop the company’s hardware and scaling costs to near-zero.This is what makes Meta so profitable. You can count the companies sharing this advantage on one hand – Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) and Amazon (NASDAQ:AMZN).Meta Platforms’ Data Center ProblemThe problem for Meta is where the centers are located. There are 15 built or under construction in the U.S. Additionally, three are in Europe and one is in Singapore.But many of the company’s fans are in the Global South: India, Southeast Asia, Africa, and South America. Many people in these areas use Facebook, Instagram and WhatsApp to connect to global economies and discussions. They’re not getting the metaverse.We’re already finding Cloud Czars stumbling under the load of cloud gaming, which is a first step toward the metaverse. For example, Google’s Stadia is quietly going away.The new buzzword is the Cloudless Cloud, and smaller, “edge” data centers closer to customers for high bandwidth, low latency applications.FB Stock Is Losing Its FansZuckerberg refuses to rent cloud capacity. He has continually ignored government warnings about how the company handles data. The CEO is offering former politician Nick Clegg as “vice-president for global affairs.”  That means Clegg is supposed to sell Zuckerberg’s plans. It doesn’t mean he’s making decisions.For the other Cloud Czars, the problem of too much capacity is solved by renting the excess. Amazon, Microsoft and Google are fighting to host the world’s data. Meta isn’t.Just supporting other, similar software applications with storage and bandwidth would be enough to please Wall Street. But Zuckerberg won’t do it.That’s why, even at its current price, analysts are tip-toeing away from FB stock. 11 of 44 analysts tracked by Tipranks are now in the “hold” camp.The Bottom Line on FB StockMeta Platforms can still be saved — but not if Zuckerberg persists in ignoring the danger all around it.For now, he seems intent on doing just that. He sees his broken product model as a marketing problem. He refuses to let other companies use his data centers. He’s defiant. He controls the board, and he controls the stock.Mark Zuckerberg is just 37. But history shows Ford fell hard after its initial success. General Motors (NYSE:GM) passed it with a more organized, even bureaucratic approach. Ford himself wound up as an isolationist, out of step with his time.Without World War II and the more-professional leadership of its founder’s grandson, Henry Ford II, the company may have failed. Meta Platforms still might.","news_type":1},"isVote":1,"tweetType":1,"viewCount":158,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":308,"xxTargetLangEnum":"ORIG"},"commentList":[{"id":100637583,"commentId":"100637583","gmtCreate":1645695962756,"gmtModify":1663244243929,"authorId":3569809505691000,"author":{"id":3569809505691000,"idStr":"3569809505691000","authorId":3569809505691000,"name":"breAkdaWn","avatar":"https://community-static.tradeup.com/news/4c3676c14de9bfcd6f45bcf7ba4ddb6c","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.01.11","exceedPercentage":"80.41%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9030888809,"objectIdStr":"9030888809","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"true it's on a journey. a virtual one.&nbsp; with no airlines, no trucks, no EVs,&nbsp; just wear eye mask!!","text":"true it's on a journey. a virtual one.&nbsp; with no airlines, no trucks, no EVs,&nbsp; just wear eye mask!!","html":"true it's on a journey. a virtual one.&nbsp; with no airlines, no trucks, no EVs,&nbsp; just wear eye mask!!","likeSize":0,"commentSize":1,"subComments":[{"id":100637627,"commentId":"100637627","gmtCreate":1645696532152,"gmtModify":1663244245734,"authorId":3585644829136692,"author":{"id":3585644829136692,"idStr":"3585644829136692","authorId":3585644829136692,"name":"ANNIEPLTAN","avatar":"https://static.tigerbbs.com/ceab3c533f66796aa2bca8a10b0fd5e1","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9030888809,"objectIdStr":"9030888809","type":1,"supId":100637583,"supIdStr":"100637583","prevId":0,"prevIdStr":"0","content":"That's the future ...stay invested and be rewarded.&nbsp; I believe in them.","text":"That's the future ...stay invested and be rewarded.&nbsp; I believe in them.","html":"That's the future ...stay invested and be rewarded.&nbsp; I believe in them."}],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/9030888809"}