Zeff The Great commented on a stock · Jul 27, 2023 07:23

Predicting US’s 2H economy

The Q2 result of $Meta Platforms (META.US)$ shows that almost every key data exceeded market’s expectations.

The number of daily active users reached a new high of 3 billion even after excluding the newly launched Insta Threads , apart from this , it’s advertising revenue was showing a firm rebound . $Alphabet-C (GOOG.US)$ had also released it’s numbers lately , coincidently ,both social media giants were sending a clear message , the advertisers are returning, companies are willing to spend more in the digital marketing activities.

Advertisement can be further dividend into awareness advertising and conversion advertising .

During the beginning of an economic downturn , the amount spent in conversion advertising will be affected, and we witnessed this during last year where most of the social media operators were taking a hit.

Mark Zuckerberg indicated that the “layoff” cycle is ended , and Meta is planning to continue hire more talents and resume the capex in the year to come.

Although FED raised interest for another 25 basis points , and it may spark the fear of further slowdown in economy , but i opine that from the spending behavior of companies via social media , the likelihood of a recession is slim.

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As the Chinese idiom saying goes by , "春江水暖鸭先知" , which means when the river water becomes warm in spring, the ducks know it first.

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Zeff The Great

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