They say the ONLY constant in life is change…
And that those who are best suited to adapt to those changes – are the best suited to survive.
Well…
At least according to Charles Darwin.
They also say that change is good…
However, that’s not really the case, is it?
Sure, sometimes it’s great…
A little change or even a lot – can be just what the doctored ordered.
But…
Sometimes, change doesn’t improve anything… it just makes a mess of things.
We’ve all gone through it – and been on both sides of the spectrum.
So have most of the financial world’s biggest names…
And this time – it’s Zuckerberg’s turn.
Yes…
Even social media king, Mark Zuckerberg, isn’t immune to the chaos brought about by the winds of change.
This is something he – and Meta (META) shareholders found out first hand – as Zuck’s gamble to set the former Facebook up as the future of the metaverse…
Doesn’t seem to be a winning horse right now.
Last Wednesday, Meta’s disappointing earnings update sent the shares spiraling…
And shocked shareholders once again – who started 2022 with Meta shares around $330…
And now watching it trade for less than $100.
Even though he’s not the only social media company to hit the skids – as both Snap (SNAP) and Alphabet (GOOG) also put out abysmal numbers…
Meta’s downward spiral is like one of those car wrecks you can’t turn your ahead away from watching.
Even though the social media giant brought in 4% more monthly active users across its platforms last quarter than the same time last year…
These users weren’t buyers – and the average price paid per ad dropped by a whopping 18%.
And it gets worse…
Meta’s Reality Labs segment – the divison behind the metaverse development – brought in HALF the revenue it made during the same time in 2021…
But also racked up bigger losses too.
That means Meta’s overall revenue fell 4%…
That’s Zuck and the company’s second straight quarterly drop – with profits tanking a whopping 52%.
And the fly on top of this crap cake?
Meta predicted a worse-than-expected revenue outlook for this quarter as well.
No wonder shares dropped 17% overnight.
Once the coolest kid at the dance…
Meta’s shares are now down nearly 70% for 2022 – the biggest drop of its fellow FAANG Gang contemporaries.
The most likely culprit is that investors – mostly Boomers like yours truly – aren’t fully sold on its new-age metaverse.
Seeing as this division has cost the company around $30 billion in losses over just three years – it seems like investors just can’t see the value or potential in the digital realm.
Shareholders are asking Zuck to cut metaverse spending in half to try and stem the leaking profits…
But it’s still Zuck’s company – and so he may not take them up on their suggestion.
However, it does seem like he’s ready to do something he’s never done in the history of the almost 20-year-old company’s history…
Slash jobs.
Will it stop the bleeding?
Time will tell…
One thing for sure – it has to do SOMETHING – and do it soon.
The good news is – like a lot of tech stocks – META is pretty affordable.
That’s what happens during economic downturns…
Investors get the chance to get in on big companies for a pittance.
It’s also during economic downturns that GorillaTrades shines.
Our recommendations are all based on data and numbers…
So, if a company is giving us lip service – but their financials are off – they don’t make the cut… no matter how attractive they may seem.
Which is why I’m asking you to become a member of GorillaTrades today…
We can help you navigate these uncertain economic waters – and help you pull in a few big fish along the way.
Or…
You can keep fishing barren waters.
We’d love to help!
Regardless of what you choose to do – keep your eye on Meta…
It could be the blueprint of what NOT to do for a tech company.
“The biggest risk is not taking any risk… In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.” – Mark Zuckerberg