To The Moon

Users are the foundation of social media companies, like $Meta Platforms(META)$ and $Tencent(00700)$ , with one relying on advertising and the other on gaming.

Meta’s Q3 DAP increased by 7% YoY to 3.96 billion, while DAP increased by 7% YoY to 3.14 billion, with a DAP/MAP ratio of 79%, one of the highest levels in the industry. This shows that the stickiness of Meta's Facebook, Messenger, Instagram, Whatsapp, and Reels is indeed significant.

Few talks on Threads, it revealed the MAU less than 100 million on the conference call, which is quite vague. If a new product performs well, would you hide it? Therefore, it is likely that Threads is a product that will not come to fruition.

I actually think this is not a bad thing for Meta.

It shows that the existing social media matrix seems accessible to everyone, but the moat is very deep. Even Meta cannot move Twitter's position (X of $Tesla Motors(TSLA)$ Musk), so who can shake Meta's position?

The next generation VR scene is also being developed by Meta, and while it may not be doing well yet, no one else has been able to do it well either.

Therefore, the company's overall valuation can be calculated purely based on PE, and it is not high. It's just that advertising reflects the economic outlook, and investors are currently lacking in confidence.