We’re all currently guilty of aiding and abetting a murder. A tad dramatic perhaps, but I am of course referring to Apple’s [AAPL] remorseless destruction of the world of social media as we know it.
But is it truly the end..?
This article was originally written by MyWallSt. Read more insights from the MyWallSt team here.
Will the metaverse save us all?
Facebook [FB] certainly hopes so, as its share price plummeted as much as 22% after-hours. And, like a hivemind that has lost its queen, the other social media players are scattering to the wind.
Pinterest, Snap Inc, Twitter — all in the red, all scrambling to keep panicked investors on board, all beholdeth to the whims of iOS-lord Tim Cook and his privacy goals. And all the estimates and speculation around the true damage caused by iOS 14.5 and its opt-in tracking to social media companies can cease. We have a figure from Facebook for the cost of damage: $10 billion.
Facebook has admitted that Apple’s App Tracking Transparency feature will cost it as much as two BlackLine’s, or four Virgin Galactic’s. And without these other social media companies even reporting, the damage is done and investors know what to expect.
But this is not the end.
An unfortunate combination of inflation, supply chain issues, and now Apple, have meshed together to form the perfect social kryptonite, hence the dour outlook from investors.
But, if you’re a long-term investor, then fear not — ok, a little fear is fine, but I wouldn’t sell just yet. These are cyclical problems for the industry at a time of great upheaval. Social media itself has never been more widely used, and the prospects of the metaverse are too hard to ignore. So allow yourself a little dramatic gasp this earnings season, but if your conviction is strong and you wait out the storm, the possibilities are endless.
For an in-depth exploration of the metaverse, read this Insight within MyWallSt today.
MyWallSt gives you access to over 100 stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
Continue reading for FREE
- Includes free newsletter updates, unsubscribe anytime. Privacy policy