Meta Platforms (FB) 4Q21 Financial Results: What is the 7 investment areas declared by the founder Zuckerberg?

Facebook's Meta Platforms, a parent company company, has attracted attention in the stock market in the first week of February 2022.After the financial results announcement, the stock price dropped sharply by 20%."Facebook is no longer growing," he said.

According to the founding manager Mark Zuckerberg, it may not be a big deal, no matter how much Meta's market capitalization is.It would be more important for him to be in the market for decades in the next few decades.

And that's what Meta today is most questionable.With the number of users "pure" compared to the previous quarter, operating income in October to December fell on the year -on -year.

Competition platforms such as "Tiktok" are continuing.The construction of "Metahabath" launched by Meta seems to be a ridiculous plan at least at this point.

The current Meta Platforms is forced to steer between reality and ideals, and the recent vision and recent performance in the future.We will organize the company's future initiatives, focusing on the content spoken from the mouth of Zuckerberg in the recent financial results announcement.

Seriously to switch to the short video "REELS"

"If 2021 was a year to solidify the foundation, this year is the year of execution," said Zuckerberg.There are seven specific investment areas.

There are seven REELS, community messaging, commerce, advertising, security, AI, and metaverse.

The first one was the short video "REELS".As you can see, this is just a follow -up after "Tiktok".Zuckerberg himself has a lot of options, and he acknowledges that the competitive environment of the app is fierce.

In fact, the number of daily active users (DAU) on Facebook has been pure from the previous quarter.MAU's growth is almost stopped.Because it is huge, it cannot be maintained without providing what they want.

So "trade -off" assumed

That's why Zuckerberg declared that "consumers are shifting to short videos, so Facebook will also move to short videos."What exists here is trade -off in profits.

The "screen" of the app is a limited resource for Meta, whose advertising business is the business.If you move to a new format, the number of displays of existing news feeds will be reduced.As a result, in the short term, the growth of the impression (number of displays) is assumed to have a negative effect.

Similar trade -offs have experienced in the past.One is a shift to the mobile (smartphone) itself, and the other is the "story" function.In particular, the former did it before the mobile ad was fully realized, which was a factor in the stock price of Facebook for a while.

According to Zuckerberg, it is "no longer obvious" that short videos are the center of content consumption.In fact, the growth of Facebook and "Reels" on Instagram is far higher than other formats.

Facebook has developed a video platform as "Watch", but the monetization is delayed.Nevertheless, Zuckerberg has a optimistic outlook that short videos have the opportunity to monetize them like feeds and stories.

Enhance the chat function for groups

Next, the community messaging area was mentioned.In short, a group chat is a platform like "Slack" at work and "Discord" for hobbies.

At Meta, existing messaging apps such as "WhatsApp" have become the foundation, enhancing the group chat function.Facebook and messenger have launched a real -time group communication function called "Community Chats".

The third is "Commerce".Since 2020, Meta has enjoyed the benefits of online shifts that have accelerated worldwide.As with Amazon and Google (alphabets), they are working to expand their functions with the cause of "supporting businesses".

Handle while headwinds in the advertising business

The fourth is "advertisement".The business environment is headwind for Meta, with Apple restricting data that can be collected by app vendors on iOS.This is also the strengthening of regulations in Europe.

According to COO's Sheryl Sandberg, Apple brought two difficulties on two aspects.One was the worsening targeting accuracy, and the other was difficult to measure advertising results.

What can be said consistently is the tide of reducing the number of data that can be used for personalization to users.For end users, it is better to display an advertisement related to you.Needless to say, the business operator wants to publish a clearly targeted advertisement.

Meta will reconstruct advertising infrastructure to achieve high -precision advertising targeting in the above -mentioned business environment.

Privacy and AI are one of the areas that will continue to invest.Earlier this year, we announced the state -of -the -art AI supercomputer "AI Research SuperCluster".In 2022, we plan to increase the number of GPUs to be operated from 6,080 to 16,000.It will be the fastest AI supercomputer in the world.

Use "existing asset" to spread metahabath?

The end of the investment area is, of course, "metavers".At the beginning of the settlement call, Zuckerberg emphasized his ambition for the construction of metaavas.

He says, "Metaverse is assembled by creators and (external) developers, not just to make ourselves.

A few months have passed since Zuckerberg's "Company's Change Declaration", and many other companies have spoken of ambitions for Metabas.The word "Metaverse", which used to be only partially spoken before, has spread significantly.Zuckerberg has been working on coordination with other companies.

In terms of hardware, the traction of the VR headset "Quest 2" is increasing.The QUEST store has already purchased $ 1 billion, and content development for virtual space has been established as a business.

Sales in the hardware category "Reality Labs" have been disclosed for the first time, indicating that it has been increasing rapidly a year ago.The result of the year -end holiday season was powerful, and the "Oculus" app was first ranked on Christmas on the US App Store.

The high -end VR headset will be released in the second half of this year.We will also develop AR glass known as "Project Nazare".

In terms of software, "HORIZON" is the core of metabathing.The United States and Canada have been released to the general public, and many talented creators have already created recording studios for working and relaxing spaces for meditation.

This year, a mobile version of "HORIZON" will be released.As Zuckerberg acknowledges, the key to the realization of the platform and developers to realize the metahabath is the key.Eventually, you will be able to access the world from Facebook and Instagram apps to recruit early participants without being bound by VR.

Focus on "avatars" that express themselves in virtual space.Last December, "R Meta Avatars SDK" was released to all unity developers.Meta avatars can be used for Quest, Rift, and Windows -based VR platforms.

These avatars can be used not only for Quest but also on Facebook, Instagram, and messengers.By preparing an entrance to a 3D space for the largest asset, the largest asset in Meta, the bridge between the two worlds.

Meta will proceed with the investment as mentioned this time.On the other hand, the effects of headwinds from Apple and European authorities are expected to increase in 2022.The sales forecast for the FY022 FY022, 270-29 billion (up 3 to 19 % year -on -year) will slow down significantly.