[TOPIC]Why did META surge while SNAP & PINS plunged?
$Meta Platforms, Inc.(META)$ soared today by 14%, but two smaller social media companies, SNAP and PINS, fell after their quarterly reports.
In terms of stock performance, META>> PINS > SNAP.
In terms of quarterly numbers, $Pinterest, Inc.(PINS)$ exceeded expectations last quarter, while SNAP fell short.
Meta's advertising revenue increased by 3% YoY, PINS' increased by 5%, and SNAP's decreased by 7%. The difference is still significant.
1.Why did META can deliver a good report after Apple’s privacy terms?
For social media platforms, they must rely on self-reliance, which is what Metaverse refers to as "using AI to solve Apple's privacy issues." This is achievable for $Meta Platforms, Inc.(META)$ because they have enough users and user behavior data.
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Zuckberg said,
"Our AI work is driving good results across our apps and business. We're also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision."
2.Why did $Snap Inc(SNAP)$ fall while $Pinterest, Inc.(PINS)$ beat estimates?
However, it is difficult for $Snap Inc(SNAP)$ because they do not have enough users and user behavior is relatively single.
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As for why $Pinterest, Inc.(PINS)$ is still doing relatively well, the logic behind it is that for Meta or Snapchat, it is unknown which audience their advertising content applies to, and they need Apple to provide more data so that they can classify the audience and target advertising more accurately.
But PINS' business model is different. People who use PINS generally have a plan to spend money.
For example, users who want to spend money on home decoration will browse home decoration pictures on PINS. This advertising business model is similar to $Amazon.com(AMZN)$ ‘s advertising business model. When you go to browse a headphone page, you already plan to spend money on it, so Amazon only needs to place a few headphone ads to achieve good results.
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