Big Technology Podcast Merits Of Metaverse + Big Tech Wipeout — With Eric Jackson
Nov 2, 2022
Eric Jackson, president and portfolio manager at EMJ Capital, dives into the significant downturn of major tech companies, focusing particularly on Meta's staggering 71% drop this year. He discusses the fierce competition Meta faces from TikTok, the implications of their pivot to the metaverse, and the skepticism surrounding their operational expenditures. The conversation expands to include Amazon's struggles and Apple's contrasting resilience, shedding light on the shifting dynamics of the tech market and what the future might hold for these giants.
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Meta's Algorithm
- Meta's focus on follower-based content distribution hinders its competitiveness against platforms like TikTok and YouTube Shorts, which prioritize algorithmic distribution based on content quality.
- This difference may lead to inferior user experience and less creator engagement on Meta's platforms.
Meta Investment Strategy
- Investing in Meta offers two potential outcomes: success in the metaverse or a course correction that boosts the stock price.
- Zuckerberg's long-term vision and willingness to listen to feedback suggest his commitment to adapting to changing landscapes.
Advertising Downturn
- Google's advertising business demonstrates greater resilience due to its search function serving a direct user need.
- Digital advertising is facing a downturn, impacting companies of all sizes, with smaller companies experiencing more significant effects.