Facebook (NASDAQ: FB) is on the ropes…
Last week $232 billion was erased from the company’s valuation. And the outlook for Facebook is bleak.
The company is trying to pivot – and focus on the metaverse. Yet a new tech stock is already the #1 player for new virtual worlds.
The fall of Facebook started last year when The Wall Street Journal released the critical Facebook Files.
The train really went off the rails last week with Facebook’s earnings. That’s when the company lowered its financial forecast.
Plus, changes to the Apple (NASDAQ: AAPL) iOS privacy settings will cost Facebook $10 billion in lost revenues!
It’s not just the Apple issue. The story for Facebook continues to get worse and worse.
Founder and CEO Mark Zuckerberg says that the company is facing an “unprecedented level of competition” from TikTok.
That caused Facebook’s total users to decline in the final months of last year – marking the first user drop in company history.
Now, Facebook says that it may have to discontinue service in Europe. That could mean turning off Facebook and Instagram in several European countries due to privacy regulations.
Finally, there’s one more sign that Facebook faces a huge uphill battle.
Peter Thiel is resigning from the company’s board – after serving as a director for two decades.
Thiel was one of the first investors to back Mark Zuckerberg. He invested $500,000 for a 10% stake in Facebook (NASDAQ: FB). And cashed out with over $1 billion after the company’s IPO.
Thiel is considered a top Silicon Valley venture capitalist.
His firm was an early investor in innovative startups including Airbnb (NASDAQ: ABNB), SpaceX (private) and Spotify (NASDAQ: SPOT). He is also a co-founder and chairman of Palantir (NYSE: PLTR).
So… his departure isn’t exactly a “vote of confidence” for Facebook.
I’m NOT buying Facebook stock today. It’s unclear whether the company will be successful in its aspirations.
That’s why I’m buying a NEW metaverse stock that just IPO’d (go here for details).
This company has already gone from 10 million daily users to 50 million daily users.
The biggest brands in the world are moving from Facebook to THIS platform.
Not only that, they are capturing the EXACT demographic that Zuckerberg is losing – GenZ.
Frankly, this stock could soar as much as 4,000% after a recent IPO.
It’s one of the MACE stocks I’m betting $100,000 of my own cash on.
Yours in Wealth,
Full Disclosure: Ian Wyatt owns shares of Facebook, Airbnb and Spotify.
P.S Did you see this: Peloton Bidding War: Amazon versus Apple