Boiler Room: The Official Stock Market Discussion

[Chrishaune]

Ehh, we’ve seen wearable tech that goes on your face fail again and again - Google glass, 3D tv, facebook’s oculus hasn’t broken out of being a very niche item. Furthermore, the people raising the next generation, millennials, had their formative years shaped by always being online/social media and have begun to push back, I see this with the way my friends raise their kids, I don’t think millennials partners will let their kids get as immersed in the online world since we know the harm, this shyt is peaking with Gen Z IMO.

We'll see how it goes.


Reason I say that is because of this
TechCrunch is part of the Yahoo family of brands

Facebook (aka “Meta”) CEO Mark Zuckerberg today took several thinly veiled shots at Apple and the overall app ecosystem when detailing his plans for the metaverse during today’s keynote speech at the company’s Facebook Connect 2021 event. Specifically, he called out app platforms and their associated fees for “stifling innovation,” while simultaneously justifying Facebook’s plans to keep some of its own fees higher as it further invests in its burgeoning VR ecosystem and its Oculus Quest Store.

His statements follow Apple’s recent app privacy changes that have taken a toll on Facebook’s ads business. With the release of App Tracking Transparency, Apple now allows consumers to stop apps from tracking them across other apps and websites. But this change has dragged down Facebook’s revenue, the company has admitted.

Now, Facebook sees the potential in building out its own app platform with Oculus to create a new stream of revenue — one where it becomes the platform that profits, instead of the developer having to pay the commissions. And one where its business can’t be destroyed at the whims of another company’s shift in strategy.

Zuckerberg acknowledged that it’s time to make this change, saying that he’s learned in recent years that “building products isn’t enough.”

“We also need to help build ecosystems so that millions of people can have a stake in the future and can be rewarded for their work and benefit as the tide rises — not just as consumers, but as creators and developers,” he said. “This period has also been humbling, because as big of a company as we are, we’ve also learned what it is like to build for other platforms. And living under their rules has profoundly shaped my views on the tech industry,” Zuckerberg continued.

“Most of all, I’ve come to believe that the lack of choice and high fees are stifling innovation, stopping people from building new things and holding back the entire internet economy,” he added.

These comments seem directly pointed at Apple and Google, on whose platforms Facebook’s core products largely reside. Facebook has to pay fees on in-app purchases to the app stores — including when users subscribe to creators, buy badges or tip streamers directly, for example. While both Apple and Google have been bringing their commissions down for smaller businesses, media providers and subscription apps, the standard split is still 70/30 (platform/developer).

App Store rules have also prevented Facebook from building out other products where it could have increased revenues — as with its newer gaming service.

The company slammed Apple’s policies last year as it launched Facebook Gaming on iOS without games, for example. Apple doesn’t allow apps that contain other apps or games, as that would cut into its own ability to generate revenues from third-party developers. So instead of being able to play mini-games as on Android, Facebook Gaming iOS users could only watch streams.

However, the real concern for Facebook’s future is one where its ad revenues are threatened by platform policy changes out of its control.

Those revenues over the years have allowed Facebook to invest in other sectors, in addition to keeping its apps free, Zuckerberg noted.

“We offer our creator and commerce tools either at cost or with modest fees to enable as much creation and commerce as possible. And it’s worked. Billions of people love our products,” he touted. “We have hundreds of millions of businesses on our platform.”

The company now plans to take the same approach to build its metaverse ecosystem — by either subsidizing devices or selling them at cost, to make them more broadly available to consumers, Zuckerberg said. And unlike with Apple’s App Store, Facebook says it plans to support sideloading and linking to PCs to provide consumers and developers with choice, instead of locking them into its platform. (Of course, many developers will choose to launch on the Quest Store for discovery’s sake, which is why Facebook knows it can make this promise.)

He also said that Facebook would keep developer and creator service fees low, when possible. However, Zuckerberg — sketching out the company’s next business model — warned that won’t always be the case. Given the size of its investment in this new ecosystem, some fees would remain higher, he said.

“To keep investing in this future, we’ll need to keep some fees higher for some period to make sure that we don’t lose too much money on this program overall,” Zuckerberg explained. “After all, while a growing number of developers are already profitable, we expect to invest many billions of dollars for years to come before the metaverse reaches scale. Our hope, though, is that if we all work at it that within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce, and support jobs for millions of creators and developers.”

In other words, Facebook’s plan is to become more like Apple by tapping into developer revenues at scale and making its own rules.

 

[chineebai]

How long you been doing this breh? Always dropping knowledge

I appreciate it. Trying to watch what you say and the graphs to getting better.

Appreciate the shoutout! Extremely busy at work so am not able to post as much as I used to here. Great to hear about constantly improving, i'll try to call out more patterns in my post.

 

[chineebai]

ENVX went from red to green today which is a great sign. Levels to watch out for are 35,38,41 so if it can get past 35, then its 38, and then 41, and stops are the levels below, that's how you manage risk. ENVX also has incredible volatilty for such a non high beta ticker

 

[chineebai]

LAC is toying around the $35 level, you can see that it's been riding it today. Rejected so far the 4-5 times it's tested there. Buyers need to step up to get it pass $35.

 

[mr. smoke weed]

Tech company

Not just a car company

What are they developing? Legit question.

 

[Chrishaune]

What are they developing? Legit question.

What have they already developed. A skateboard platform, a electric delivery van, working on an electric charging network giving more access to people outside of your normal areas. I don't work for them though, so I don't know what all they are doing. That's just what they've been doing. Now they have more money to work with. We'll see what they do.

 

[mson]

Here’s Who’s Gone Public in 2021 (So Far)

 

[humminbird]

Ehh, I don’t see how or where meta replaces Apple. A whole bunch of people are not bout to sucked into playing out make believe lives but they will continue to need and want hardware. Furthermore Meta seems like more of a threat to various parts of the gaming and comms tools ecosystem than hardware products and “regular” entertainment. Meta will provide an outlet for those with social media and escapism addictions and gamers, great sized market but everyone ain’t buying into a virtualized life.

thank you and then we're going to pretend Apple is just going to be shocked and surprised like they're not working on metaverse applications as well

 

[Chrishaune]

thank you and then we're going to pretend Apple is just going to be shocked and surprised like they're not working on metaverse applications as well

Who said they would go out of business though?

Less important doesn't mean out of business.

If you have the stock do you. I'm not commenting on their stock.

 

[mson]

Toshiba plans to split into three firms - CNN

 

[GoldenGlove]

This metaverse thing might make Apple less important.

I don't think so. These centralized worlds won't really make any strong brand less important IMO. Unless there is a unforeseen mentality switch from these companies (Facebook/Meta, Microsoft, Apple, Amazon etc) where they all intend on working together to connect every metaverse as one, we're going to just get multiple worlds that are fragmented just like their traditional services are today.

The real metaverse has to interpolable and simply give developers the tools to create things in it. From there, the users will want to bring their digital stuff with them everywhere.

It's like videogames and DLC. You could have thousands of hours put in one game's ecosystem, and have built up a ton of game equity and collectables. But once you jump on a different game, you have to start at 0. That's what I see happening with the metaverse, there's going to be multiple variations, and they're going to want people to stay in them, and a way to incentivize this is to not play nice with other ones.

I say all that to say, Apple would make their own metaverse before getting left behind.

 

[chineebai]

inflation play - LPX above 68

 

[Chrishaune]

I don't think so. These centralized worlds won't really make any strong brand less important IMO. Unless there is a unforeseen mentality switch from these companies (Facebook/Meta, Microsoft, Apple, Amazon etc) where they all intend on working together to connect every metaverse as one, we're going to just get multiple worlds that are fragmented just like their traditional services are today.

The real metaverse has to interpolable and simply give developers the tools to create things in it. From there, the users will want to bring their digital stuff with them everywhere.

It's like videogames and DLC. You could have thousands of hours put in one game's ecosystem, and have built up a ton of game equity and collectables. But once you jump on a different game, you have to start at 0. That's what I see happening with the metaverse, there's going to be multiple variations, and they're going to want people to stay in them, and a way to incentivize this is to not play nice with other ones.

I saw all that to say, Apple would make their own metaverse before getting left behind.

That's exactly what Facebook (excuse me "Meta") is pushing for. Something for the creators. Whether they do it right is another question. It might be some other company that really comes up with the basis of one everybody migrates to.

 

[chineebai]

Ethereum has a negative divergence that I don't particularly like but buyers can step up and regain control.

 

[GoldenGlove]

That's exactly what Facebook (excuse me "Meta") is pushing for. Something for the creators. Whether they do it right is another question. It might be some other company that really comes up with the basis of one everybody migrates to.

You're right, Meta is trying to be the first on a mainstream level, they want that first movers advantage, because they know traditional social media (ie:Facebook) is dated and boring

I think it will be successful for large amount of people, but like you're alluding to I also think that they're only going to touch the surface with what a metaverse is capable of when it's centralized (which Meta is 100% going to be). With decentralization at the forefront of WEB3.0, Meta is trying to get ahead of the metaverse hype before a real decentralized one gets real traction. Peep this video, it's great insight on these future worlds