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🐂 META — Company Profile (Teaching)

Teaching site, not investment advice. Specific market cap / stock price / financial figures change frequently and are intentionally omitted; use the SEC + Yahoo Finance links below to pull real-time data yourself.

📌 Basics

Dimension Content Source
Core business Facebook + Instagram + WhatsApp + Threads + Messenger social/advertising + Reality Labs (VR/AR) + Llama open-source models 10-K FY25
Founded / HQ 2004 / Menlo Park, California, USA wiki
CEO Mark Zuckerberg (founder, since 2004; dual-class voting control) DEF 14A
Primary listing NASDAQ: META (Class A, ordinary vote); Class B held by founder with 10:1 super-vote (Zuck controls ~58% voting)
Fiscal year Calendar year (Jan 1 – Dec 31) SEC EDGAR

💡 Real-time market cap / share price / DAU / ad ARPU: see SEC primary + IR links below.

🏭 Supply Chain Coordinates (Part 1-C6 framework)

Upstream (Who META Depends On)

Supplier What flows Key dependency
NVDA AI training / inference GPUs (Llama training + recommendation + Reels inference) #3 hyperscaler customer (per Zuck public capex remarks)
AMD MI300/MI350 (secondary, internal deployments) Diversified
AVGO + MRVL MTIA in-house AI ASIC IP partnership Critical — long-term cost-down path
TSM MTIA + Quest SoC foundry Only option
CRWV Neocloud capacity — META-CRWV $21B through 2032/12 (incl. Vera Rubin) Strategic capacity lock (LEDGER F-033)
COHR + LITE 800G/1.6T optical modules (massive AI cluster fabric) Dual-source
ARM (via AAPL) Quest VR headset SoC IP

Downstream (Who Depends on META)

Customer Relationship Concentration
Global advertisers (FB + IG + WhatsApp ads) #2 digital ad platform (after GOOGL) Highly diversified
Global users DAU across platforms totals 3B+ Not concentrated
Llama open-source ecosystem Developers / startups use Llama (vs. ClosedAI); META indirectly benefits via ad monetization No direct billing

Competitors

  • Advertising: GOOGL Search + YouTube / TikTok / ByteDance (private company, no public ticker) / AMZN retail ads / SNAP / PINS
  • AI models: OPENAI GPT / ANTH Claude / GOOGL Gemini / XAI Grok / DEEPSEEK
  • Short video: TikTok (core threat) / YouTube Shorts
  • Messaging: AAPL iMessage + GOOG RCS (but WhatsApp dominates globally)
  • VR/AR: AAPL Vision Pro (but V2 scrapped post-M5, F-071) / SONY PSVR

💼 Business Model + Value Capture (Part 1-C7 view)

  • Revenue mix: Family of Apps (ads + WhatsApp + Threads + Messenger commerce) ~99% / Reality Labs (Quest + Ray-Ban Meta smart glasses) < 2% (significant losses ~$15-20B/year)
  • Gross margin: 80%+ overall (social ads high margin; Reality Labs drags op margin)
  • Pricing power: Auction-based ads (CPM by supply/demand); AI raises ROI which raises ARPU — strong
  • Substitution difficulty: high — 3B+ users multi-platform social network effects; Llama open-source strategy builds developer mindshare

(For specific quarterly revenue / DAU / ARPU / Reality Labs losses, see the latest SEC 10-Q.)

🏰 Moat Assessment (Part 3-C2 Buffett 5-step lens)

Type Strength (0-1) Source
Brand 0.9 FB / IG / WhatsApp globally recognized (but losing youth share to TikTok)
Switching cost 0.7 Friend graph lock-in; WhatsApp is global messaging default
Network effects 1.0 3B+ users cross-platform — textbook example
Scale + cost 0.8 Global data + AI recommendation + in-house MTIA + CRWV $21B capacity

Composite: 3.4 / 4 → extremely strong (social) + unclear AI strategy + Reality Labs cash-burn risk

⚠️ Key Reverse-Trigger Conditions (Part 3-C5 anti-thesis view)

  • Trigger 1 (quarterly): Llama model quality persistently lags GPT-5 / Claude / Gemini significantly — open-source loses mindshare
  • Trigger 2 (annual): Reality Labs losses widen — market rejects Zuck's VR strategy
  • Trigger 3 (event): FTC antitrust ruling forces IG or WhatsApp divestiture (filed 2020/12, in progress)
  • Trigger 4 (quarterly): TikTok remains legal in US + share continues to rise — Reels counterattack fails
  • Trigger 5 (low probability): Apple iOS further tightens ATT framework, IDFA data further restricted — ad ROI declines

🔗 Teaching Cross-References

📚 SEC Primary Filings (look it up yourself)

Real-time quote: Yahoo Finance META


Teaching use · numbers change — learn the method, not the specific figures · investment decisions are based on your own research + risk tolerance