[hedgehog]

Apple may have been a factor but I think the bigger issue is FB's growth narrative got weak and their valuation was based on expectations of growth. The new story is that they are no longer attracting young, affluent users that as a cohort represent the future ideal advertising target and cash cow for the company. Repeatedly other platforms (Instagram, WhatsApp, TikTok) have shown they can grow rapidly while FB's in-house copies keep failing. More recently antitrust concerns have clipped the wings on FB's primary defense against external competition (early acquisition). Their big bet on the metaverse seems like a big boondoggle that doesn't have legs. Losing cross-app spyware may hurt FB but I don't think it's the biggest reason why the public market have lost faith in FB's growth prospects. They still trade at a PE of around 11 so it's not all doom and gloom.