Summary of How TikTok is CRUSHING Facebook

00:00:00 - 00:15:00

The video discusses how TikTok is crushing Facebook in terms of revenue and profitability. TikTok is facing four main problems which, taken together, could represent an existential risk to the company. These problems are an industry-wide decrease in advertising spending, Apple's increased privacy regulations, Facebook's massive cash burn from its metaverse investments, and the growing popularity of Tick Tock. If these problems continue, Facebook's user numbers may stagnate or even decline.

• 00:00:00 In this video, Wall Street Millennial covers the stock market crash of 2022 that has hit technology stocks particularly hard, with particular reference to Facebook founder Mark Zuckerberg's fortunes. They discuss meta, which is the parent company of Facebook, and its current state, noting that its revenue and profits are taking a nosedive. They also discuss the company's history and its advantages, including its massive scale and its state-of-the-art advertising technology. Finally, they discuss how Facebook's scale and advertising efficiency has contributed to its current success.
• 00:05:00 TikTok is crushing Facebook in terms of revenue and profitability. In 2020, Facebook made a record 29 billion dollars in net profit. However, in 2021, their net profit dropped to just over 2 billion dollars. Their share price has also declined by almost two thirds over the past year. TikTok is facing four main problems which, taken together, could represent an existential risk to the company. The first is an industry-wide decrease in advertising spending. The second is Apple's increased privacy regulations. The third is their massive cash burn from their metaverse investments. And finally, Tick Tock, which is a competing short form video platform, is growing faster than Facebook. If these problems continue, Facebook's user numbers may stagnate or even decline.
• 00:10:00 Metaverse, a subsidiary of Facebook, is seeing a decline in its userbase and revenue. The main reasons for this are the competition from other social media platforms, the effects of Facebook's past controversies, and the company's efforts to reduce its workforce. However, the company's CEO Zuckermanberg insists that the metaverse will still be profitable in the long run.
• 00:15:00 The video discusses how TikTok, an app known for its short videos, is causing widespread disruption of the social media platform Facebook.