Why META is up +400% since 2022

March 18, 2024

Shares of META have ridden a tech-resurgence wave higher from 2022 lows (+400%!), and are up nearly +40% YTD.

LikeFolio data corroborates these gains, and even paints a Bullish story from here.

Mention buzz is accelerating, up +13% on a YoY basis. Much of this is being by consumer adoption of Reels, Meta's answer to TikTok.

Last week the U.S. House passed legislation that could lead to TikTok being sold or banned, addressing national security concerns over data privacy. However, a sale wouldn't completely solve data security issues, and the proposal faces significant challenges, including ownership and antitrust concerns.

TikTok might have lost that battle, but data suggests META is already winning the war for consumer eyeballs, regardless of TikTok's availability in the U.S.

Reels mentions are up by triple digits YoY, besting TikTok growth and continuing to chip away at market share.

If there's anything Meta is good at, it's copying app designs and pushing it through to its billions of users who are already on one of its social platforms – it had 3.07 billion monthly active users last quarter alone.

The battle for eyeballs is really a proxy for advertising spend.

Last quarter much of this spend came from overseas, with China-based advertisers like Temu and Shein accounting for 10% of sales as they try to break into the US market. META will benefit as the ad market at large recovers.

Aside from advertising, META may prove the near-term winner when it comes to AI headsets. 

Though Apple's Vision Pro was impressive, the world wasn't quite ready for it...yet. You can see on the chart the drop of the Vision Pro actually served as a catalyst for META's Quest VR headset, which has wider immediate use cases/applications right now. Quest mentions are up +48% YoY after 2 years of decline.

Lastly, it looks like META has expenses under control. 

The company laid off 22% of its workforce in 2023 and decreased its expenses by -8% in the fourth quarter. These moves, coupled with stronger ad spend more than doubled its operating margin.

Bottom line: META is finally proving competent at battling competition from giants like TikTok and even AAPL. If the company can continue make improvements on the AI front and rake in ad dollars, it likely still has gas in the tank.

Want deeper insights? Get Free Access to The Vault.

Related Posts

Can Meta Platforms Live Up to Its New Name? ($FB)

The company formerly known as Facebook (FB) shocked the world […]

Read More
Meta (FB) has a big problem.

At the start of this year, I wrote about Meta […]

Read More
WhatsApp is giving Meta a Boost

Meta, formerly Facebook, is set to report earnings after the […]

Read More
1 2 3 4

Related Posts

Related Reports

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.
© 2024
 LikeFolio. All Rights Reserved.