Meta Platforms

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Company Overview and Acquisitions
– Meta Platforms, Inc. is an American multinational technology conglomerate based in Menlo Park, California.
– The company owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services.
– Meta is one of the world’s most valuable companies and among the ten largest publicly traded corporations in the United States.
– It is considered one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Microsoft.
– Meta has also acquired Oculus, Mapillary, CTRL-Labs, and a stake in Jio Platforms.

Revenue and Advertising
– Meta relies on advertising for a vast majority of its revenue, with advertising making up 97.5 percent of its revenue in 2022.
– Despite endeavors into hardware, advertising remains the primary source of revenue for Meta.
– The company’s focus on advertising has led to its success in attracting advertisers and becoming a must-own stock.
– Meta’s advertising revenue has contributed to its high market capitalization and valuation.
– The company continues to explore new revenue streams to justify its mammoth valuation.

Name Change and the Metaverse
– On October 28, 2021, Facebook changed its name to Meta Platforms to reflect its focus on building the metaverse.
– Meta defines the metaverse as the integrated environment that links all of its products and services.
– The company’s vision for the metaverse includes creating an immersive virtual reality experience.
– Meta’s focus on the metaverse has led to the development of products like Oculus and the integration of Reality Labs.
– The name change represents Meta’s commitment to shaping the future of technology and connectivity.

Facebook’s Initial Public Offering (IPO) and Legal/Financial Events
Facebook filed for an IPO on January 1, 2012, seeking to raise $5 billion.
– The IPO valued the company at $104 billion, making it the largest valuation to date for a newly public company.
– Zuckerberg retained a 22% ownership share in Facebook and owned 57% of the voting shares after the IPO.
– The IPO raised $16 billion, making it the third-largest in US history at that time.
– The stock struggled initially, but eventually set a new record for trading volume of an IPO.
– Other legal and financial events include notable lawsuits involving Facebook, such as Young v. Facebook, Inc. in 2011, Fraley v. Facebook, Inc. in 2016, Force v. Facebook, Inc. in 2019, and the ongoing FTC v. Meta Platforms case. Facebook’s inclusion in the S&P 500 index in 2013 also showcased its financial success and prominence.

Challenges and Controversies
– The rebranding to Meta Platforms came after a period of intense scrutiny and damaging whistleblower leaks, including the Facebook-Cambridge Analytica data scandal and 2020 Facebook ad boycotts.
– Meta reported a greater-than-expected decline in profits in the fourth quarter of 2021, with no growth in monthly users and expected revenue growth stall.
– Meta faced allegations of data sharing with hackers posing as law enforcement officials and leadership changes, including Sheryl Sandberg’s resignation and Javier Olivan’s appointment as her replacement.
– Meta’s advertising business was limited by Apple’s app tracking transparency feature and user opt-outs, leading to a decline in revenue.
– In July 2022, Meta saw its first year-on-year revenue decline and a significant decrease in market value, losing its spot among the top 20 US companies by market cap. References:

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Meta Platforms