Did you know that the stock market has fangs? Well, one “FAANG” to be precise, and that’s just a cute acronym on wall street for Facebook, Apple, Amazon, Netflix, and Google. The tech giants of the world. And those giants took a beating on the NYSE last week thanks to Facebook’s Meta. Or was it Apple’s fault? It’s a complex situation and we’re going to break it down for our readers here today. Because these businesses are so big that when they take big steps, forward or backward, we all feel it. The shockwaves of big tech success or failure are felt through almost every industry, for better or worse. MyOutDesk is proud to have gotten ahead of the competition in our respective industry, much like Facebook is trying to do with Meta. But the road to success is a bumpy one. So whether it’s a smart move for the social media giant or not remains to be seen. In the meantime, here are the facts.
Facebook, or “Meta” as they’ve rebranded themselves, experienced their biggest one-day stock drop ever. Shares of Meta closed down more than 26%; a massive hit to their market value. This shocking devaluation of one of the biggest and most successful corporations in the world reverberated through the entire market. Companies like Amazon, Netflix, Google, Gamestop, Twitter, Snapchat, and Etsy all experienced a day in the red on the NYSE. And Zuckerberg himself experienced a net worth loss of $31 billion. Yikes. In an odd internal communication, Meta employees were told that Mark had “scratched his cornea” and thus might appear to cry at their company-wide video meeting. Whether that was a tongue-in-cheek joke or an embarrassing attempt to save face remains to be seen. Real tears not, Facebook/Meta stock continues to drop even as I write this article.
Who’s To Blame?
No one entity is to blame, but rather a combination of unprecedented things all happening at once. The drop last week kicked off with a weaker than expected forecast from Facebook, regarding their revenue growth into the next quarter. This sparked concern in investors, resulting in a major dump in shares. Facebook cited a declining user base in key markets as one thing influencing their financial woes. As well as macroeconomic challenges like inflation and continued supply chain issues disrupting their advertiser budgets. They also mentioned competition from TikTok hurting their efforts to pivot into video-focused social media. Facebook Reels, short videos similar to TikTok’s format, have not been nearly as successful.
Another important factor is Apple and its recent privacy changes. We actually spoke here before about how Apple was making major changes to iOS regarding marketing and privacy. These changes give users more flexibility and options to determine their experience with ads and what information they do or do not share. It was expected that this would impact other companies who utilize digital advertising, as they would start to have access to fewer data from users who opt into these privacy safeguards from Apple. It appears those expectations were accurate, as they hit Facebook’s ad-targeting and measuring efforts hard.
What The Heck is Meta?
While the examples listed above surely affected Facebook revenue, the elephant in the room is Meta. For those out of the loop, Meta isn’t just a rebrand of the Facebook name in the face of public disdain. It’s also an entirely new platform of virtual engagement that Facebook is leaning very heavily into for the future. The concept simplified is a virtual world, like a massive videogame, that people and even companies/brands can log into and interact with. While Meta itself isn’t available to the public yet, early invites and similar platforms from different brands have been met with a controversial experience. Whether it’s boredom in the virtual world or consequence-free harassment, the optics aren’t good right now. But Facebook is banking on it as a product with less short-term revenue, but massive long-term potential. The question is will the massive losses be worth it to be “first” if and when the virtual world takes off?
What Happens Now?
Zuckerburg is still worth $90 billion after the drop. But it’s his employees, often compensated for their success with stock options, that can’t afford big drops like this. And when the CEO doesn’t take responsibility for controversial business decisions that result in losses for his employees, those employees lose confidence. Then they become tempted to join this “great resignation” that’s been facing our nation as of late. Will Meta retain its top talent and power through this speedbump? Can they afford to eat losses in the short term for the promise of a big win in the long term? Only time will tell, once the dust settles. Rebranding Facebook as Meta has not been the success hoped for yet, but he appears to be in this for the long haul nonetheless.
Where Is MyOutDesk?
If you zoom out, this really is a sign of the times, isn’t it? The world is different now, and it’s changing our way of life in so many ways it can seem hard to keep up with. Things we took for granted are being taken away or changing into whole new things right before our eyes. And the way we do business with each other is no different. Allowing remote work and looking to outsource specific functions of business are becoming increasingly accepted, as they continue to be successful for growing companies. MyOutDesk is fortunate enough to have been in this virtual assistant business long before it was cool, and long before the pandemic forced hands. Just like Facebook has banked on virtual experiences being the future of the internet, MyOutDesk banked on virtual professionals being the future of business. The only difference is we ended up being right, and now our clients benefit from our success.
You should see firsthand how and why MyOutDesk has been able to leave the competition in the dust. And how we continue to pave the way for growing businesses to scale up so efficiently and effectively. You can do this by clicking the link below to request a consultation with one of our experts. They will answer any questions you have, and they’ll listen to whatever you have to say regarding your needs, expectations, and even reservations. Our virtual assistant model isn’t a good fit for every company. But we’ll work with you to determine what’s best for your needs. Whether that’s one virtual assistant managing your social media presence, or three of them cold calling for you. We have lots of options available. Your success is our success, so let’s talk and be successful together.
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