Ask not for whom the bell tolls, Facebook. It tolls for thee, says bitcoin bull Lou Kerner. The crypto investor says Facebook is on its last legs, and even its over-hyped stablecoin project, Libra, can’t save it.
Kerner made the ominous predictions in a Medium blog post, where he rebuked Wall Street for being blind to Facebook’s obvious deterioration because of the investment community’s misguided focus on revenues.
Lou Kerner: Facebook’s user engagement is tumbling
According to Kerner, the most important metric that analysts should focus on is Facebook’s year-over-year plunge in user engagement.
“It’s not a pretty picture…The graph/data shows that Facebook is dying. At the moment, it’s a slow death. But at some point, it will accelerate. That’s what social networks do. They grow engagement, until they don’t.”
As CCN reported, a tech entrepreneur and former Harvard classmate of Facebook CEO Mark Zuckerberg says Zuckerberg is “the greatest con man in history” and claims that Facebook has 1 billion fake accounts.
Facebook underperforms the Nasdaq and its peers
Kerner says Facebook’s collapsing statistics for daily active users and monthly active users will ensure that it continues to underperform the Nasdaq and its “FAMGA” tech peers consisting of:
This is a serious red flag, Kerner warns. For the past 18 months (that’s six financial quarters), Facebook stock has underperformed the Nasdaq (up 5% versus 15% for the Nasdaq) and embarrassingly lagged behind its FAMGA peers.
“More telling, Facebook has dramatically under-performed its peer group, which averaged a gain of 33% over the past 18 months. I believe Facebook will continue to underperform the Nasdaq and their peers.”