6/30/2022: Meta Head Winds

Stock Markets end H1 with worst performance since 1970. Well, I think part of the reason is that stocks were doing too great in 2020 and 2021. It’s due for a big correction and the loose money policy is backfiring. It’s hard to say what would happen in H2 2022. My prediction is that we need to go down another 20+%. SPY at 320 would be an entry point for me, which is the SPY price on 1/1/2020.

My previous employer Facebook, currently known as Meta sent an internal memo noting tough times ahead with super strong head winds. I knew they are in trouble. Huge headwinds include

• Deteriorating economy that would impact ad spending

• Apple Privacy Change. (Google is implementing the privacy change too.)

• Tik Tok

• People spending less time online post pandemic

• Low employee morale

• Questionable Metaverse investment

I sold all my FB 0.00%↑ stock before it became META 0.00%↑ (I keep a tiny amount to donate to my DAF but I don’t consider that my money) so I don’t have a financial interest in them any more. But I do wonder if they are going to be the next AOL or Sun Microsystems. People are gradually leaving the platforms and they do a really bad job being a steward of the giant platforms they are in control of. People got locked out of their accounts and couldn’t get them back or got put into Facebook jail erroneously in an alarming rate. It’s not going to end well. I predict META would fall into obscurity in the next decade. The lack of care for users is catching up with them.