Is Meta back?

Submitted by NoneScan65 t3_125um24 in wallstreetbets

stock prices slid by almost -80% since Sep'21 till now.

Back then when it was citing challenges, going head-to-head with TikTok, Facebook's growth looks like it hit the ceiling already.

The sell-off was not isolated. Meta joined plenty of other tech stocks tanking during the sell-off.

But it suffered much more, as it is still languishing at a share price of USD 200 as of the time of writing.

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But it has rebounded by 121% from its bottom back on the 4th of Nov'22.

So what triggered the rally?

First thing first, share buybacks. In Q4 of 2022, Meta repurchased USD 6.91 billion of their common shares, bringing their repurchases to USD 27.93 billion in 2022.

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Source: theverge.com

Secondly, more headcount slashing. The layoff of 10,000 employees back in November, will be met with an additional 10,000 employees.

The market cherishes cost-cutting for big stable companies. But will that impede Meta's innovation and strength when it comes to technology?

It's still  a big question mark as of now, but the market is happy, thus the rebound.

But, is the long-term prospect of Meta intact?

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VisualMod t1_je5yzi1 wrote

>No, the long-term prospects of Meta are not intact. The company is facing headwinds in terms of growth, and its share price will continue to languish below USD 200 in the foreseeable future.

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NRA-4-EVER t1_je606pk wrote

The biggest question mark is the two Supreme Court cases on section 230...

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DefendSection230 t1_je6n9gp wrote

Not really.. The case is only about algorithmic amplification.

It would be like holding a bookstore liable for creating a local best sellers list. That's stupid.

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warbeforepeace t1_je7r9ch wrote

Which is vital to the function of all social media companies. It’s way different than a bookstore since there is a good chance the book isn’t bullshit or it’s clearly indicated as such.

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NRA-4-EVER t1_je7vqil wrote

I never gave my opinion on the validity of the cases, merely pointing out that an unfavorable decision will be extremely unfortunate for all social media companies.

If a bookstore banned some books claiming they were "dangerous" but then sold a book that could be ruled as inciting violence then they could be held liable. Once you start editing you become a publisher. The courts have already ruled there is a limit to free speech. Also, the courts have allowed producers of products that are legal but harmful can be sued, and by amplification of a dangerous product, that publisher could be liable.

If you assume the justices will only rule on the amplification of one post over another as it relates to 230 is myopic at best. All you have to do is look back to last year and the Dobbs case. Instead of simply ruling that 15 weeks was the new bar set, they threw out 50 years of roe. Dobbs didn't require that to exist, but the justices decided roe itself was wrong and struck it down. In this case one of the justices said in questioning that the court could even overlook the standing challenge, which this court has repeatedly shown a deference for just to make a ruling on 230. It sounded like they're interested in the whole matter.

I don't know how it will go, but I'm not going to pretend that it may not be very detrimental to meta.

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DefendSection230 t1_jebom5s wrote

>If a bookstore banned some books claiming they were "dangerous" but then sold a book that could be ruled as inciting violence then they could be held liable.

No they can't.. Why would you think that? That would be punishing them for using their First Amendment right to no carry the books they don't want to carry.

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>Smith v. California (1959)
https://en.wikipedia.org/wiki/Smith_v._California
The court held that the free publication and distribution of books are protected under the constitution's guarantee of freedom of the press, and that a bookseller, such as Eleazar Smith, plays a key role in this publication and distribution. The court also cited that legal doctrines and devices are not capable of application under the constitution if they would have the effect of inhibiting freedom of expression by making citizens afraid or reluctant to exercise that freedom.

Section 230 protects Publishers, specifically.

>"Id. at 803 AOL falls squarely within this traditional definition of a publisher and, therefore, is clearly protected by §230's immunity."
>
>https://caselaw.findlaw.com/us-4th-circuit/1075207.html#:~:text=Id.%20at%20803

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NRA-4-EVER t1_jec7yac wrote

You bring one case on bookstores. Here's a ton that relate to free speech/press, which is what gives bookstores their rights. You can go to the link, not typing out ALL of the cases, way too many! You need to realize the current court as already started throwing down some serious decisions that buck the pervious assumptions about many issues. Don't live in bubble, listen to what the judges have said and done. What I think or you think is irrelevant, it's what those six in the majority think that matters. Just like it was a few years ago when all that mattered was what justice Kenedy thought since he was the swing vote most of the time.

https://supreme.justia.com/cases-by-topic/free-speech/

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VisualMod t1_je5yyu7 wrote

User Report
Total Submissions 7 First Seen In WSB 6 days ago
Total Comments 9 Previous Best DD
Account Age 4 months [^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.) [^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
>TL;DR: Meta is still a big Algorithmic company
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ReposadoAmiGusto t1_je5zbfx wrote

Fucked my puts up. Let’s see if she gets back above 207

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_andrewzilla_ t1_je71s3n wrote

I came to this thread to see motivational gainz. Positions or goddamn banimg

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BlueBalledApe t1_je7drhw wrote

No, money destroyed in the metaverse endeavour is forever lost and add revenue through existing platform hit a ceiling.

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That-Relation-5846 t1_je7p2dh wrote

Don't bet against an army of very smart people willing to disrupt themselves

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Time_Yam301 t1_je668ig wrote

What happens if Zuckerberg drops dead? Do the shareholders actually own the company?

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