Introduction
When Apple released a new operating system, it gave people more control over their privacy and stopped advertisers from tracking their online activities. This led to the Meta vs Apple debate.
By the end of April, the value of Apple shares hasn’t changed. After opening at $170.62, Apple Inc.’s stock closed at about $165.29. Nevertheless, it was a good day for Meta Platforms Inc. Shares closed the day at about $210.18 and hit a high of about $214.99 during the day.
Meta and Apple
Often, the two companies don’t like each other because they don’t agree on what they believe in. Meta’s announcement that they want to make money from the metaverse led to the most recent fight with Apple. Horizon Worlds, Meta’s platform for the metaverse, will let creators make money by selling digital items, with Meta getting about 47% of the money.
In the past, Meta, which used to be called Facebook, has had problems with Apple’s App Store prices, which they say are too high. The company that owns Apple, makes about a third of all online store purchases. This means less money for Meta, making apps for phones and tablets. In this case, Apple said Meta was unfairly taxing Meta’s authors by as much as 50%.
On MarketWatch, an Apple spokesman said, “Meta has repeatedly criticised Apple for charging developers a 30% fee on in-app transactions.” This is because Apple charges developers a 30% fee on in-app transactions. As of today, “Meta wants to charge those same creators much more than any other platform does.”
Regardless of what Meta thought, there was a backlash from content creators who thought Apple was taking advantage of its power, even if Meta thought the same. Wait and see how this affects Facebook’s parent company’s earnings and stock price, which owns the company.
People often see Facebook’s privacy features at odds with Apple Privacy
Apple has an App Tracking Transparency feature that lets people choose not to have their data collected by third parties. It was a new level of competition between Meta, the parent company of Facebook, and Apple, the parent company of Apple. As a result, a lot of money could be lost because companies like Facebook will no longer be able to target their ads.
Many people are becoming more and more afraid of giving out their personal information because they don’t want it to be used by someone else. So Apple is putting its trust in the privacy of its customers.
Meta, on the other hand, has very poor privacy policies. The day after they made a big announcement, Facebook ran newspaper ads supporting the small businesses that use personalized advertising to reach their target audience.
A Facebook parent company called Meta has a CFO named David Wehner. Wehner thinks the company could lose over $10 billion in advertising revenue as the fight between Meta and Apple heats up.
Meta, the company that owns Facebook, has seen its stock price go down.
In February 2022, Meta’s stock took a huge hit. After Meta reported a rare drop in profits, the stock market went into panic mode. As the company bet more and more on the metaverse, the market went into panic mode. Risk-averse Meta’s stock price went down because Wall Street people couldn’t stand the company’s bad results. As a result, the value of Meta’s stock has dropped by more than 23%. Investors are worried about the future of the company. On February 3, the company’s value went down by about $215 billion.
Analysts also worry that Facebook’s privacy problems and controversies could hurt the metaverse and make it less likely to succeed.
Apple Shareholders’ Equity and Pay-outs
Because Apple’s stock fell in March, you must have wondered, “Why is Apple stock down?” Because Covid-19 has been in China, Foxconn Technology, which makes iPads and iPhones for Apple, has been forced to close its doors for the time being. As a result, they had 22 per cent of the world’s smartphone market share in the fourth quarter of 2021.
Many people think that long-term lockdowns could have a big impact on Apple’s financial performance, even though investors aren’t very worried about it; some people in the business still think that they have a lot more to offer, even though there have been a lot of ups and downs recently. As a result, they keep the company in their recommendations.
Warren Buffet, a billionaire investor, owns a small amount of Apple, about 5%. To do what Buffet does is do what is best for everyone, so we should do the same.