Increasingly, Meta has been using debt to fuel its spending, amassing $59 billion in long-term debt on its balance sheet by the end of 2025, double the prior year’s total. And that doesn’t count the “aggressive” accounting it has used to keep the cost of a $27 billion Louisiana data center off its books. “The spending growth looks increasingly unsustainable,” The Wall Street Journal’s “Heard on the Street” columnist Asa Fitch wrote this week.
Now, as the company careens from one staggeringly expensive misadventure to another, its cash-cow core business is starting to wear out. Last quarter, the number of daily active users across its properties declined for the first time to 3.56 billion from 3.58 billion.
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First they’ll collapse slowly, then all at once. The debt is catching up to them, they’ll start laying off even more people, and they’ll try to increase revenue by running more ads, and charging more for the ads, etc.
If you think they, or any of them, including our own government, are “too big to fail”, well, it’s happened before.
Cant wait for businesses to have websites again.
I don’t understand why businesses don’t predict this downward spiral. I recall a city with crap bus infrastructure saying ridership was down so they had to increase fares. So then a while later, oh ridership is lower again, let’s increase fares. Duh, its down because the routes suck and you’ve increased the barrier to choosing to use it. SMH
I believe what you’ve described is intentional with any service that someone is looking to cut. Step one: this service sucks and doesn’t deserve as much funding as it has. Step two: cut funding. Step three: see step one.
Republican playbook.
“Starve the beast”
Smaller businesses or privately owned businesses with a smart owner do.
Large publicly traded companies are sustained by a perception that an investment in or loan to that company will pay off in a higher dollar amount in the future, so if the perception becomes the company is shrinking then the investments and loans slow down which makes the perception worse, you get that feedback loop which turns into the death spiral.
So the bigwigs at the top of these companies have to be professional liars and gamblers to change the perception and make it look like everything isn’t just fine, they’re doing great! The line must go up.
There is a certain type of people that absolutely hate public transit, because its the evilbad socialism.
So they do everything in their power to sabotage it and make it as awful as possible, with the ultimate goal of selling it off to one of their pals and privatize.
Businesses are only as smart as the dumb humans who run them
First they’ll collapse slowly, then all at once.
People have been predicting in imminent collapse of various tech firms for what feels like decades
Nothing is too big to fail. Some things are simply too big to fail gracefully or quietly.
Meta-nay-Facebook is one of those things.
Company: grows 5% in a year instead of predicted 5.5%
Corporate media: It’s dead.
When you speak of billions and trillions it’s all meaningless bullshit and everything has gotten too far out of hand.
Yeah, it’s wild. I think these numbers are really literally making people into obsessive power hoarders like smaug. All this time and humanity has not yet learned it’s not a great idea for any one person to have amassed such wealth and power.
How
the FUCK
can a single datacentre cost
TWENTY SEVEN BILLION
dollars?
Well, you have the actual, physical cost of the datacenter – the land, the design, the engineers, the permits, the environmental studies, the lawyers, the construction, etc – and then you have the cost of removing roadblocks along the way. Especially in Louisiana, if you’re not familiar with Huey Long: he’s been gone for many decades, but his way of doing business down there hasn’t changed a bit.
It’s exactly like the East Wing ballroom: there’s a private fund that Trump opened specifically for businessmen to contribute that will fund the ballroom construction, which has been open and taking donations since he tore the East Wing down, and there’s also the bill before Congress, right now, that will have the ballroom paid for by tax dollars, all of it.
“But,” you may ask, and rightly so, “why are private contributions needed to fund a ballroom that will be funded entirely by taxes?” and the answer to that is, “Yes.”
One of the sure signs you’re in a banana republic is that every palm must be greased on the way to getting legal consent for anything, no matter how small. The US is now no different.
Funny how you use the term “banana republic” to mean “corruption that wasn’t in the US” when the situation that coined the term was created by American imperialism in the first place.
Edit: not disagreeing with you btw, just found that specific use of words ironic, given the background.
No, you’re quite right. To be fair, from slavery to robber barons, I don’t think we have ever been free of corruption. But now we’re speedrunning into the level of corruption of having to bring extra cash for the bribes when renewing a drivers license.
RGB :3
Gimme the money I’m going on a world home building and feeding tour. I’m mansa musa 2.0
RAM prices bruh.
/s
deleted by creator
They have been keeping track of every website you visit for at last two decades
That would be nice. But it won’t happen. Even if Zuck bankrupts it, some Elon will buy it and nazify it and keep going. All those sheep on insta and facebook are waay to valuable to let go.
It might not completely go away, but it will slide further and ever quicker into irrelevance. Just like Xwitter has done.
I’m still waiting for that company to actually die. From what I can tell, Yi Long Ma has spun it into one of his other companies and spun that company into SpaceX. And he’s milked the AI thing. I used to laugh wondering where he’d get the 40 billion to pay off Ellison and the rest of the funders who actually paid for Twitter. The sad truth is he can find 40 billion in his couch cushions, but won’t even have to because he’ll book-cook his way out of it.
Yeah, I can’t wait for the tell-all book that someone inevitably releases in 20 years about how Xwitter was a complete ghost town propped up by sports and racism. The company is clearly hemorrhaging money like a firehose.
Exactly. It is just a brand in a larger homogeneous surveillance capitalist social media landscape. If they “fail,” the brand just gets absorbed into one of the others. If they “win,” they absorb brands (like instagram).
I’m still mad at them for buying Instagram and turning it into a copy of Snapchat and TikTok.
some Elon will buy it and nazify it and keep going
Those Knickerbocker(?) twins and that four-eyes wanting to get even at Zuck.
That’s about 3 billion people too many.
I would love it if this were true, but as a member of the mag seven, they get a huge majority of the investible income of the world by default. Passive investing is 55% of the overall investing that happens now, and that means sending money to zuck more or less regardless of what he does or doesn’t do. It’s very hard to fuck that up. Not impossible, but they will be handed a lot of money for a long time. They will have to really fuck up badly to really die.
Is “dying” the right word? They’re struggling, but I won’t be surprised if this administration or the next bails Meta out, since fb and insta are essentially public services for a lot of people, as much as I hate that. The smart thing for the fed government to do is to nationalize Meta’s platforms.
They’re not public services. They’re hostile psy-ops around the world, helping destabilise other governments.
It’s high time other countries just outright blocked that cesspool, and Twitter while they’re at it.
Right, so “public services”, as the filthy rich would sarcastically put it. Facebook is one of the major set of chains that bind, and direct us, none of them want to lose that.
3.58 to 3.56 billion isn’t really significant because in the long term these sort of mega corporations can easily recover that many users.
But I like they’re getting covered in debt, though idk how far it is from collapse as these numbers don’t make much sense to me.
Honestly, I think it’s massively significant. For a start off, that’s 20 million people, the population of Chile, in one quarter. That’s a lot of people regardless of how you slice it.
But more to the point, Meta services - Facebook especially - have reached a point of cultural impact where anyone who doesn’t have them can’t be talked into getting them anyway. Plus, they’re useful messaging services too, because everyone else uses them. Their popularity has become self-fulfilling. The idea of Meta losing more users than it’s gaining at all has been frankly unthinkable until recently.
It’s a lot of people but big tech can easily get back those numbers.
Let’s see how the tendency unrolls over the long-term.
Might be boomers dying off, and young people won’t use Facebook because it’s not cool to have an account there?
the pessimism in me suspects they’ll just get a cushy bailout from the government later. SOCIALIST CAPITALISM - when the government only cares about corporations and not people
That’s just capitalism. But yeah, they can just bailout since the concept of separate legal entities means that individual investors aren’t held responsible for corporate losses.
Not dying fast enough. A list of good reasons to quit social media: https://www.arscyni.cc/file/quit_facebook.html.
FB is hitting the issue the “growth at any cost” business philosophy hits, they’ve run out of subscribers. Like any system or organism(s) they hit the resource wall, in this case people. There really aren’t more people to sign up, they’ve pretty much squeezed what they can from advertisers. Now they are left with hairbrained schemes to push out into unrelated areas at the cost of accumulating debt. Buying up other businesses has a very mixed track record.
Wall St hates stable, steady, companies. They want endless growth when it ultimately isn’t possible. Without expansion the only way to grow profits is to cut costs. Shareholders and boards demand more. You lay off people, you cut benefits, you make the service poorer quality, cram in more junk ads, more scammers and fraud due to a lack of human monitoring, no customer service for aggrieved users, profits go up for a moment from the cuts but people start to leave so you cut more. The MBAs take the reigns, disconnected from the founders and no loyalty to the business. Execs get their bonuses for each cut and layoff and flee the sinking ship. Hedge funds profit off of the falling stock as they short it. Ads become click bait, toe fungus and ear wax ads. Down it goes…
Oh it also owns WhatsApp, one of the best messaging platforms for scammers. FB’s reels feature is mostly AI generated scammy crap. I’ve noticed a dramatic upsurge in blatantly fraudulent accounts on FB recently. I report them all but I doubt anything is done. I have never received any feedback.
There’s only about eight billion humans in existence. 3.56B daily active users is as close to saturated as you can get.
Don’t forget that a lot of them are bots
Yes, for example I have 6 bots (i.e. fake users) that are scraping some things every day. They look and behave like real users, so they must count as DAU for them. And I’m just a nobody, so I wonder how many more bots are there.
Is Meta even active in China or are they blocked by the CCP? If so you can remove 1.4 billion people from the list of potential users, meaning an even crazier market saturation
Like the billionaires currently ruining the world: please die faster.
Problem is, it’s been overrun by rage bait for clicks and vocal extremists.
It’s weird watching people think their opinion is popular because a handful of people are shouting it everywhere on Facebook.
It’s no longer fun, and there is no way to force only posts by people you know. So all the racist garbage gets lots of engagement and is also added to your feed
I left Facebook after 18 years. It’s nothing like what I originally signed up for.
Facebook is nothing but boomers, bots and AI generated click bait. A cesspool of our own creation.
Burn. It. All.
