I’m not a big fan of asocial networks, but when the first of them plunges on the stock market and loses the equivalent of 500 billion dollars since last January, I think it’s still worth talking about.
I’m not a big fan of asocial networks, but when the first of them plunges on the stock market and loses the equivalent of 500 billion dollars since last January, I think it’s still worth talking about.
I’m obviously talking about Meta, the new name of Facebook. Meta shares tumbled 19% yesterday on the Exchange’s gray market just after the Nasdaq closedthe Technology Stock Exchange.
This reduction, combined with the others, means that the world’s largest social network has lost 500 billion in valuations since last January. In other words, this group has lost more than Belgium’s GDP in 9 months! Whose fault is it ?
If you ask your children the question, they will tell you that it is because of TikTok, the Chinese app that is all the rage with teenagers, but also the not so young. And they are right, TikTok has taken market share from Meta even if today Meta copies TikTok via its Reels, very short videos inspired if not copied from what TikTok does.
But, the real reason for Meta’s descent into hell is not there. If Meta’s operating profit has just been halved, it is mainly because of Apple.
The Apple firm relies very heavily on the protection of the privacy of its users, it is even its supreme argument. For some time now, iPhone users have been able toavoid being tracked from one application to another by platforms like Facebook or Snapchat. Moreover Snap also lost 30% of its stock market valuation last week for the same reasons as Meta.
The other reason that explains the setbacks of the first global social network is that theAdvertisers have cut their digital advertising budgets. First, because the global economy is in slowdown mode, but also, as I just explained to you, because Apple’s privacy policy prevents the sending of targeted advertisements. It is therefore impossible to measure the return on investment of an advertising campaign.
In fact, what we are witnessing at the moment is a war that does not say its name between free and paid on the Internet. Meta, the old Facebook lives only on the free, therefore on its advertising revenues and does not charge anything to its users.
On the other hand, Apple is exactly the opposite, the apple firm charges its products and services very expensivebut does not depend on advertising and therefore protects our privacy.
Basically, Apple is a bit like the energy transitionit’s good for the planet, in other words for our privacy.
But there is a cost to pay the extent of which we are only now discovering. Remember, even yesterday, privacy no longer mattered, only free services mattered, even if it came at the cost of offering our most private digital data. Which makes me think of a joke from a Parisian friend on the relativity of things: tell yourself that many sacred cows revered by your elders will make excellent hamburgers tomorrow!
I’m not a big fan of asocial networks, but when the first of them plunges on the stock market and loses the equivalent of 500 billion dollars since last January, I think it’s still worth talking about. I’m obviously talking about Meta, the new name of Facebook. Meta shares tumbled 19% yesterday on the stock exchange’s gray market just after the closing of the Nasdaq, the technology stock exchange. valuations since last January. In other words, this group has lost more than Belgium’s GDP in 9 months! Whose fault is it ? If you ask your children the question, they will tell you that it is because of TikTok, the Chinese app that is all the rage with teenagers, but also the not so young. And they are right, TikTok has taken market share from Meta even if today Meta copies TikTok via its Reels, very short videos inspired if not copied from what TikTok does. But, the real reason for Meta’s descent into hell is not there. If Meta’s operating profit has just been halved, it’s mainly because of Apple. The Apple firm relies very heavily on the protection of the privacy of its users, it is even its supreme argument. For some time now, iPhone users have been able to avoid being tracked from app to app by platforms like Facebook or Snapchat. Moreover Snap also lost 30% of its stock market valuation last week for the same reasons as Meta. The other reason for the setbacks of the world’s leading social network is that advertisers have cut their digital advertising budgets. First, because the global economy is in slowdown mode, but also, I just explained it to you, because Apple’s privacy policy prevents the sending of targeted advertisements. It is therefore impossible to measure the return on investment of an advertising campaign. In fact, what we are witnessing at the moment is a war that does not say its name between free and paid on the Internet. Meta, the old Facebook lives only on the free, therefore on its advertising revenues and does not charge anything to its users. On the other hand, Apple is exactly the opposite, the apple firm charges very expensive products and services, but does not depend on advertising and therefore protects our privacy. Basically, Apple is a bit like the energy transition, it’s good for the planet, in other words for our privacy. But there is a cost to pay, the extent of which we are only now discovering. Remember, even yesterday, privacy no longer mattered, only free services mattered, even if it came at the cost of offering our most private digital data. Which makes me think of a joke from a Parisian friend on the relativity of things: tell yourself that many sacred cows venerated by your elders will make excellent hamburgers tomorrow!
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