One of the world’s most influential tech companies, and just one of a handful businesses to ever reach a trillion-dollar valuation, Meta has achieved ubiquity on an unprecedented scale with ~3bn active users. Their revenues have grown at a ~50% CAGR since IPOing while being wildly profitable with a ~50% core margin. The virtues of their business were clear: unlike traditional media, Facebook generates free content posted by their users, who in turn also drive free traffic from inviting their friends. All Facebook had to do was sell ads, and to make things even better, they would receive more personalized data from their users than any service prior, which enabled them to create the best ad targeting machine ever created, demanding the highest ad prices of any peer. Their core business generated $57bn in EBIT on $115bn of ad sales in 2021.
Meta Platforms Deep Dive
Meta Platforms Deep Dive
Meta Platforms Deep Dive
One of the world’s most influential tech companies, and just one of a handful businesses to ever reach a trillion-dollar valuation, Meta has achieved ubiquity on an unprecedented scale with ~3bn active users. Their revenues have grown at a ~50% CAGR since IPOing while being wildly profitable with a ~50% core margin. The virtues of their business were clear: unlike traditional media, Facebook generates free content posted by their users, who in turn also drive free traffic from inviting their friends. All Facebook had to do was sell ads, and to make things even better, they would receive more personalized data from their users than any service prior, which enabled them to create the best ad targeting machine ever created, demanding the highest ad prices of any peer. Their core business generated $57bn in EBIT on $115bn of ad sales in 2021.