Tim Cook is Meta's Villain, JP Morgan Latest, Digital Advertiser Survey
Apple's new VR glasses may crush Meta's stock, JP Morgan says Elon Musk is helping Meta's stock, Latest digital advertising survey
Ahoy Metamates! 🚢 🏴☠️
🆕 The TLDR This Week
- Trump requests meeting with Meta to discuss 'prompt reinstatement' to Facebook
- Bank of America upgrades META to $150 from $136
- Chris Cox allegedly pissing off VPs with suddenly wanting to copy Twitter features
- Meta buys another optics startup, Gary Sharp Innovations
- Eduardo Indacochea joins as VP, Ads ( Prev led Google Ads 360)
- Seattle folks may become mostly remote as 8th Street and a few other offices close.
Meta vs S&P 500 - 🎢
Digital Advertisers LOVE Google Above ALL
Cowen and Company does one of the largest marketing surveys in the industry. Some of the results from the most recent one might surprise you:
I was also surprised to see that despite most respondents saying their largest clients prefer to advertise on TikTok, it's still perceived as a very low ROI platform.
JP Morgan Likes Meta Now
... and it's all thanks to Elon Musk? In its latest report, JPMC called Twitter's loss in advertiser trust a "potential gain for Meta". Here are some of the other interesting bits:
JP Morgan upgraded META to Overweight
This can indicate an expectation that the stock will either increase in value or simply not lose as much value as its market or benchmark. Time will tell, but this is promising.
They see the layoff as a big positive for the stock price
Meta is now getting more responsible around spending.
They think Meta will have an easier time this year due to less competition
Separately, we expect previously intense competition in digital ads to come down for Meta this year. This is largely driven by greater scrutiny on some of its most notable social media competitors, namely Twitter and TikTok. We believe that the takeover of the former by Elon Musk and the ensuing drama around management has done potentially lasting damage to the platform’s reputation with advertisers, and Twitter’s loss may well be Meta’s gain.
TLDR: Meta's efforts to lobby against TikTok may be paying off in a major way this year.
Here Comes Tim Cook
Apple just announced it will unveil a VR/ mixed reality headset in Spring. Make no mistake - this is a fight to the death. If Apple wins over early consumers, financial analysts will decimate Meta's stock.
Same end goal, two super different strategies:
Meta - cost $1500 ( sold 15M units so far)
- Focus is on reducing cost of headset to make it broadly accessible.
- Secondary focus on fully immersive experiences, like virtual worlds
- New VP in Horizon will be an internal move from the gaming group
Apple - cost $3000
- Focus is on mixed reality uses cases, like maps.
- Eng from Iwork group is now on headset, led by Yaniv Gur
- Hardware optimization is around reducing weight so it can be worn all day.
- Investing a lot of effort into novelty features to go viral at launch - like visualizing sound waves, X-Ray vision type tech to see inside cupboards, ability to see heat maps, etc.
TLDR: Apple could kill Meta's stock in one swift blow if consumer demand for its new headset surges.
PS: If you missed my overview on this space from last week, read here.
It's almost earnings time! Make sure you're subscribed to get the full update.
🔥 Only subscribers will get:
- Updated stock price targets
- Summary of ALL major analyst views on Meta
- Access to deep dive analysis on key themes for Meta that move the stock price
The information provided herein is for general informational purposes only and is not intended to provide tax, legal, or investment advice and should not be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation of any security by That's So Meta, its employees and affiliates, or any third-party. Any expressions of opinion or assumptions are for illustrative purposes only and are subject to change without notice. Past performance is not a guarantee of future results and the opinions presented herein should not be viewed as an indicator of future performance. Investing in securities involves risk. Loss of principal is possible.Third-party data has been obtained from sources we believe to be reliable; however, its accuracy, completeness, or reliability cannot be guaranteed.