The Great Zuckerberg Smackdown

No corporation is powerful enough to forever withstand the unstoppable winds of the market [Gilder's Daily Prophecy] February 04, 2022 [UNSUBSCRIBE]( | [ARCHIVES]( >> Urgent Message From George Gilder << Wall Street is [exploiting an unfair advantage they have over folks]( you… And they’re making BILLIONS — even if the market tanks. It’s time you had a way to protect yourself — even potentially profit. [Click here to find out how now.]( It’s come to our attention that you might be missing out on extra benefits exclusively for Gilder's Daily Prophecy subscribers. Check out our website where you can find archives, updates, and everything else included in your subscription. You can access it by [clicking here now](. The Great Zuckerberg Smackdown [Jeffrey Tucker]Dear Daily Prophecy Reader, Before we get to today’s issue... There is something urgent I’m asking you to take a look at. One of my colleagues just made a rather interesting discovery regarding the future of “The Cryptocosm.” Specifically, he’s pinpointed a handful of [tiny investment speculations]( that are poised to ride alongside an exponential growth curve over the coming years. (According to his research, he’s projecting a 9,900% industry boom by 2026). George even recorded a short video clip explaining everything. [[You can watch it here.]( It’s not long. Maybe three minutes or so. I hope you take a moment and watch it at your earliest convenience. After you take a look, read on below... It surely is feeling like the breaking of a new dawn! The smackdown of the weary and overwrought work of Mark Zuckerberg and his preposterous newly named Facebook is glorious to behold. Both sides of the political aisle have been trying to rein in this company for years. They have failed. The reason is that Facebook has been too useful to the state for it to be punished too much. How well I recall how Mark, being grilled in the Senate about his business model, happily agreed to meet with them in private to discuss how the company can be regulated better. The scam should have been obvious to the world at that point. Plus, users were still showing up along with advertisers who found the platform lucrative. But markets don’t care much about political loyalties, not in the long run in any case. So we are starting to see very obvious signs of precisely what George Gilder has been predicting: the gradual end of legacy big tech and the birth of the new. What happened yesterday was essentially a disaster for Facebook, excuse me “Meta” (which is nothing more than a re-invention of a 15-year game called “Second Life”). The news from the quarterly earnings report was a disaster. As my friend Jeff Childers writes, “(1) the company’s revenues shrank for the very first time, (2) its “metaverse” project lost $10 BILLION DOLLARS, and — this might be the most important one — (3) the social media company’s “active user base” SHRANK for the first time in the firm’s history. And it didn’t just shrink just by a little. By a lot. The company reluctantly admitted to the loss of about ONE MILLION USERS between third and fourth quarters of last year.” He puts a fine point on the scale of the selloff: “In other words, Facebook lost more value in one day than almost all global companies have EVER been worth, at any time, in their entire histories.” There is a widespread perception that the company has seen its best days. Its attempt to reinvent itself has been an amazing flop, with ads that seem directed toward 13-year-olds, a demographic that has zero interest in Facebook at all. It’s all so goofy how this came about. I can just imagine the meetings. “We need to appeal to the young, the way TikTok does!” “How can we do that”? “We need more animated experiences in a 3D world!” “That’s interesting but not really our core competence” “We either change or die!” “Ok, here we go.” Instead of innovative, it all just looked ridiculous. And it seemed to cap a grim year for the company in general. At its height, Facebook became a kind of phone book for the world, an implausibly successful trick that snagged billions into posting private information in a public forum. That forum then used that information to market ads to people based on their interests. Once people figured out the racket, it started falling apart. Urgent: 80% “Dow Drop” predicted! Weird demonstration by an ex-CIA insider proves the worst Possible outcome for America A pitcher of water, a sponge… And the [most frightening 3 minutes]( of your life. If what this former advisor to the CIA and Pentagon just demonstrated LIVE on camera is correct… It means we are just days away from one of the [biggest market corrections]( of our lifetimes. One that could send the Dow plummeting by 80% or more practically overnight. If you have money in the markets you need to protect, or you’ve been worried that something bad was on its way. Then you need to [watch this video]( NOW. Because after February 10th at exactly 8:31 a.m. it might already be too late. [Click here to learn more]( ***Warning: Viewer Discretion is Advised*** A Captured Corporation The single worst error of the company was allowing its entire platform to be deployed for government propaganda for a solid two years. We even have the complete correspondence of Zuckerberg and Anthony Fauci in which Mark volunteered the whole company to serve as a loudspeaker for CDC prattle about masking, distancing, and lockdowns. Maybe Mark thought this would be great for business in a time when half the world’s population was locked down and forced to live on digital media. The trouble is that this didn’t last and now people are livid about what happened. Facebook also then became wickedly censorious, adjudicating science, pulling down posts, and banning users. Even in the last few days, Facebook has deleted hundreds or thousands of groups that have supported the trucker convoys that protest vaccine mandates. And they have done this under lame excuses. It’s been brutal. Now the company is being punished. It wasn’t just Meta. It was the whole big tech sector, including Twitter, Snapchat, Pinterest, and even Amazon. Amazon recovered quickly, and among them all, it will be the hardest to beat in the coming years. The others gained implausibly during lockdowns and then became venues for censorship. They will fall on hard times as the public snaps out of their Covid lunacy and back to reality. The frothy tech stocks, along with big pharma and other beneficiaries of lockdowns, are likely to take a beating, if not sooner, then later. The Myth of the Permanent Network Let’s talk about something called network effects. Economists have been fascinated by them for many decades insofar as they seem to interrupt normal market processes. Inferior technologies can outlast much-improved technologies for a very long time simply because so many people use the legacy tech as part of a network. The value of each unit depends entirely on the existence of others who use the same unit. The service they provide is wedded to something outside itself. You can apply this in history with something like the telephone. It didn’t have much value in the earliest days because other people did not have them. The network needed to be born, but no one person in particular had the incentive to birth the new because there was no one to call. But once the network started forming, each unit became more valuable as the utility of the phone grew. The reverse is also true. You might hate Facebook. Despise it! But so many of your friends use it that you cannot give it up. It’s how you keep up with birthdays. It’s how you communicate in “private messages” that are not really private. It’s how you keep up with the news. And so on. So you personally hate it but you love the network. That network sustains the market power of a technology long after it has been technologically superseded. But such effects are not all-powerful, as the collapse in active Facebook users has declined. After a time, the costs of using the thing becomes too high and the benefits too low. So eventually people just stop showing up. They don’t delete their accounts; they simply stop using it. Maybe they are tired of the CDC announcements, they come to realize that FB “friends” are not real friends, that they generally find the thing just annoying. Five years ago, having been accused of having enabled Trump to win the presidential election, Facebook started tweaking the platform to allow only big news platforms to appear on the homepage, deprecating all independent sources. Then it eventually pushed news out completely and started posting stuff from the people you call “friends.” But then the real problems began: people were not actually that interested in the latest blatherings of their fake friends, especially when the whole point is to spy on you and pillage your information. The razzle dazzle of what was possible — communicating with people across the world, meeting new people, keeping up on gossip — lost its luster. Just because something is possible doesn’t mean it is infinitely valuable. That is where Facebook is today. It’s a metaphor for something larger. Facebook was a beast, seemingly unstoppable. Now we see otherwise. It is being pushed aside for better and more secure platforms that don’t pillage you and spy on you. Yes, it could come back but not without a complete rethinking. Actually, I take it back: that won’t happen. Once again, the lesson presents itself: no corporation is powerful enough to forever withstand the unstoppable winds of the market. Regards, [Jeffrey Tucker] Jeffrey Tucker The Metaverse Story You’re NOT Hearing… Everywhere you turn, people are raving about the Metaverse. Facebook’s now called Meta. Microsoft’s CEO says, “The Metaverse is here.” Apple’s all in too. But there’s a critical piece of the Metaverse story you’re NOT hearing about… [Click here now for the full details](. [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. 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