Member-only story
Recently, whenever Facebook is mentioned, we often heard about the following things : (1) Whatsapp’s New Privacy Policy causing people to move to new messaging apps such as Telegram, Signal etc (2) US Federal Trade Commission (FTC) antitrust litigation against Facebook (3) Apple’s new privacy policy which would likely have an adverse impact on the accuracy of Facebook ads. It’s all bad news, and these potential risks has been reflected in Facebook’s stock price movements recently.
Many people say “Facebook is for old people! Young people don’t use it anymore.” Some of the Stocks KOL I follow seems to think that Facebook won’t be performing well in near term because of all the headwinds. I agree with the above arguments and think that Facebook’s glory may be coming to an end.
However, after being exposed to some new information in the past few days, my views have changed quite a bit. Facebook’s advertising business is still going strong, and more importantly, it has shown a new growth runway.
Facebook Main Business: Digital Advertising
Facebook’s main business is Digital Advertising. For many e-commerce business, life would be hard without Facebook, as it is one of the most scalable channels out there.
