Breakfast News: Teens Turning To Meta
December 13, 2024
| S&P 500 6,051 (-0.54%) |
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| Nasdaq 19,903 (-0.66%) |
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| Dow 43,914 (-0.53%) |
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| Bitcoin $100,014 (-1.6%) |
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Source: Image created by JesterAI.
1. Meta's WhatsApp Improving With Age
WhatsApp, owned by Meta Platforms (META -1.16%), was the only social media site to grow in popularity with U.S. teenagers since 2022. A recent survey from the Pew Research Center showed users of X (formerly Twitter) and Alphabet's (GOOG -0.67%) YouTube falling versus 2022 comparisons, while WhatsApp usage increased from 17% to 23% of those surveyed. Meta's Instagram and Facebook's popularity remained largely unchanged.
- Proof in the numbers: Meta's Q3 earnings reported a 48% jump in non-advertising revenue that was partly attributed to WhatsApp, given the ability for business users to pay to chat to customers on the app.
- The company formerly known as Facebook: When Meta was first brought to the Fool universe as a Rule Breakers rec in 2012, it was described as having "the ultimate (social) network effect." It's since beaten the S&P 500 by 1,593%.
2. Chipmakers Set For Pivotal Year
Strong AI chip demand continues to help the sector rally, with Broadcom (AVGO 0.29%) up 14% after the market closed following the latest earnings.
- Record fiscal Q4 revenue just the start: CEO Hock Tan flagged that key clients were likely to build large AI chip clusters going forward, providing Q1 '25 revenue guidance above analyst expectations.
- Intel needs to catch up: Management at Intel (INTC -0.65%) yesterday stressed the importance of new chipmaking technology due next year. Successful implementation could prevent a potential sale of its manufacturing division, a move mooted by the co-CEOs as a way to stem the falling stock price.
3. China Chatter Disappoints Markets
The Hang Seng index dropped by over 2% to close the week, with Chinese property developers falling the most, after new stimulus plans failed to live up to expectations.
- Falling short of consensus: The much-anticipated statement following the Chinese economic policy meeting was light on detail, but pledged to loosen monetary policy, raise the deficit ratio, and help home prices.
- "Win-win cooperation over a zero-sum game": President Xi was seen trying to ease potential trade wars with President-elect Trump, in comments about how the two powerhouses should choose dialogue over confrontation. Given market expectations, any walkback on tariffs could provide a boost to Chinese exporting stocks.
4. Under the Radar
Bitcoin (BTC -2.20%) ought to form 1-2% of traditional '60/40' investment portfolios, with Magnificent Seven stocks having a similar risk level to the cryptocurrency, according to a new BlackRock (BLK 0.54%) research report. However, recognizing Bitcoin's volatility is crucial if Fools choose to invest in it.
- Preparing for all eventualities: This week, Digital Explorers analyst Bernd Schmid noted "If the medium-term correlation between global liquidity and Bitcoin holds, we may have to brace for a Bitcoin correction to under $70k by February."
- The importance of perspective: "IF this happens, other cryptos would likely fall even more, call it 50%+. Such drawdowns are normal in crypto bull markets."
Under the Radar is our newest digest section that seeks to answer: What's something important going on that no one else is talking about?
5. Foolish Fun
Earlier this week, we asked what you believe is underrated when assessing a potential investment. Today, we're asking for one thing that investors overrate in a company. Debate with friends and family, or become a member to hear what your fellow Fools are saying!
