SOCIAL MEDIA SHORT UPDATE
NB: This is an update to the January 12, 2021 piece “Social Media is a Solid Short” on MacroESG.com. When Tim Cook, CEO of Apple, called out Facebook’s business model as being a social liability for humanity, he put a cap on the stock price. Trade location: Facebook shorts should be made against the high of this day. While the market power is so substantial now, FB is gently listing along. As the US congress and President Biden are tied up with vaccinating America and getting the stimulus program into law, this has kept the hammer of the government from coming down yet on social media while Australia led the challenge of the social media revenue model. If this were to happen across the world, Facebook’s near 40% profit margin on about $80 billion in revenue would shrink. Jeff Bezos confirmed the negative outlook for mega-tech when he announced that he is stepping down as CEO to become Executive Chairman of Amazon, in a move almost certainly tied to the fact that the top job will become about managing regulatory risks like anti-trust, labor unions, and consumer privacy. www.macroesg.com #macroesg @gregbeier --- Send in a voice message: https://anchor.fm/macro-esg/message