That is a level of consumer penetration that is unprecedented. The company has reached 3.64 billion monthly active users across its platforms and has generated 2.87 billion family daily active people. In the new world reality where generations remain completely obsessed with social media, Meta remains the undisputed king of social media. This somewhat serves to damage the reputation of Meta as a "high-growth" company, with the first indications that the company entering into a "mature phase". The social media giant is finding it very difficult to continue to grow the reach of its product base, with some of the more stagnant ones like Facebook experiencing their first declines in users since their inception. First, the company seems to have hit what can be considered a high ceiling in terms of the maximum reach of its main social platforms such as Facebook or Instagram. The difficulties that the least liked social media company experiences are in fact three-fold. This has only served to reinforce our belief that Meta represents a great value proposition and carries significant upside potential. Since then, the company has been experiencing further selling pressure and lost another 31.14%, with shares of the social media giant currently trading at $163.73 per share. In the article, we have expressed our dissatisfaction with the manner in which the market priced in the guidance downgrade, but have also pointed out that this development had created a significant spread between price and value.
The sheer magnitude of the shareholder's value destruction that has taken place at Meta ( NASDAQ: META ) is both tragic and historic but has opened up what might become one of the best investment opportunities of this bear market.Īfter the disappointing earnings release and the subsequent crash, we have already had a chance to cover the company in our February article under the title: "Meta: Crash Is An Overreaction". The story of how the then $900 billion worth social media empire lost more than $200 billion during a couple of hours of after-hours trading after a disastrous earnings release will be remembered as one of the largest historically witnessed value destruction in stock-market history.