Jason Calacanis CNBC SquawkAlley 11-19-18: Have we reached Peak Facebook?

TL;DR

Facebook is facing a crisis as its stock plummets due to declining user metrics in North America and Europe, with only Asia showing growth, and concerns over privacy and management response.

Transcript

and Facebook adding to last week's losses on pace for their worst day since October well I was just a few weeks ago its biggest monthly losing streak ever joining us now inside comm founder and CEO Jason Calacanis also with us Wedbush Securities head of technology and media trading joel kalenna guys good morning Joel you say that headlines aside th... Read More

Key Insights

• 👤 The decline in Facebook's stock is primarily driven by poor performance metrics, including a decrease in daily and monthly active users in North America and Europe.
• 👤 Instagram's potential impact in saving Facebook is uncertain, as there are risks of oversaturation and loss of user base.
• 😘 The ongoing crisis involves dissatisfied shareholders, low employee morale, and criticism from founding members, while advertisers still rely on the platform.
• 🍉 The long-term viability of Facebook hinges on its ability to address concerns about toxic content and monetize Instagram effectively.

Questions & Answers

Q: What are the main performance metrics causing concern for Facebook's stock decline?

The declining daily and monthly active users in North America and Europe are significant factors behind Facebook's stock decline. These metrics indicate a potential loss of popularity and user engagement, which raises concerns about the platform's future growth.

Q: Can Instagram save the day for Facebook?

Instagram's success depends heavily on its stories feature, but there are uncertainties surrounding its impact. The departure of Instagram's co-founders indicates instability, and there is a risk of oversaturation and loss of user base if advertisements on Instagram Stories fail to monetize effectively.

Q: How does the ongoing crisis at Facebook affect its stakeholders?

Shareholders are losing confidence in the company, leading to a significant decline in stock value. Employee morale is low, while founders who sold their companies to Facebook have openly criticized Mark Zuckerberg. However, advertisers still consider Facebook essential for reaching a large user base.

Q: Can Facebook weather this storm and attract more advertisers in the long term?

While monthly active users continue to grow at a slower pace, there is a growing frustration among certain demographics, particularly the younger generation, with the platform's popularity. To attract more advertisers and make more money, Facebook needs to focus on monetizing Instagram stories quickly and address concerns about toxic content.

Summary & Key Takeaways

• Facebook's decline in performance metrics, specifically in daily and monthly active users in North America and Europe, is a major concern.

• Instagram's growth potential is questioned, as it heavily relies on the success of its stories feature, which led to the departure of its co-founders.

• The ongoing crisis at Facebook involves shareholder dissatisfaction, low employee morale, and criticism from founders, while advertisers still see value in the platform.