Saturday, March 2

Carlos Peña: The fall of Meta (Facebook) -26% forces you to reinvent yourself or buy TikTok

Yesterday, at the opening of international markets, a downward trend was seen in certain stations that make up the Nasqaq index, ending with 13,878 points at closing, down -3.74 percent.

Stations such as Zoom -6.87 percent, Amazon -7.81 percent and the strongest is the crash of Meta (Facebook) on Thursday, February 3, records are considered the worst in the history of the stock market, definitely the quarterly results at the end of 2021 affected, but deep down there is a reading that a simple analysis affected.

The analysis dictates that the competition of the networks, although Meta continues to have its consumption niche, there are others that are very strong according to the new generations of adolescents and young people, statistics say that in the world 34 percent are people of 35 years onwards, but the vast majority are already entering their 60s and the other part is from the new generation from 12 to 30 and that is the generation that is winning in the consumption of Meta (Facebook) and this could be the fall of Meta .

If you remember April 9, 2012 when Mark Zuckerberg bought Instagram for strategy there was also a trend of Instagram users, 250 million photos every day was a small company with 13 employees, their photography application was what in that generation more grew in the world, and in an operation of 1,000 million dollars (MDD) between dollars and shares, the purchase operation is carried out and the behavior in the same year had a growth of more than 80 percent of the share value and in February of 2011 purchase Whatsapp for 1,900 million dollars.

On October 28, Facebook renews Meta’s image, untying the corporate identity of the social network with a story like the case of Cambridge Analitycs and highlighting a change towards an emerging computing platform focused on virtual reality, anticipating the future of today in the era of the Metaverse.

The growth of Meta (Facebook) has been an innovation service simply, even with the black Thursday of the fall of 26% since the beginning, it has had an important growth since the opening value in the market of 7.08 in 2012 to 237.60 on January 3 , a growth of 3,255.9 percent.

It is clear to me that whoever innovates first wins, at the time it was Facebook, then Instagram, now, due to the number of users, the trend is Tik Tok.

From 2020 to the end of 2021, Google searches for Tik Tok have risen more than 500 percent, but why this growth so fast, everything indicates that it is part of what analysts call the perfect storm, that is, the new age of entertainment, teen niche people were locked into Pandemic.

The Digital 2019 Global Overview study, Instagram has over 1.1 million monthly active users and remains one of the fastest growing networks and belongs to Meta, but generations change.

The implementation of the Meta in the Metaverse is the bet and its best move for this application in the coming months, but everything indicates that in these 2 years of pandemic, the one who benefited most was TikTok and that the renewal definitely forces us to surprise that the application be more dynamic and above all generate creativity that Tik Tok has, to continue dominating one more generation.

Until next time

Carlos Peña Salas is CEO of OPEN OCG, has a Master’s degree in Financial Administration, is a Certified Investment Advisor and OMLID Ambassador in Monterrey.