One of Brazil’s oldest independent asset managers says it has closed a longstanding bet on Meta Platforms Inc. in the first half of 2022, citing the impact of competition from video-sharing app TikTok.
One of Brazil’s oldest independent asset managers says it has closed a longstanding bet on Meta Platforms Inc. in the first half of 2022, citing the impact of competition from video-sharing app TikTok.
“Competition for time is becoming increasingly fierce due to TikTok’s incredible ability to capture users’ attention,” IP Capital Partners wrote in a note to clients this month announcing the report this move. “While the short video format has been more successful among young people, we believe it has global appeal and will continue to penetrate older audiences around the world.”
IP Capital Partners, founded in 1988, has assets of more than 4 billion reais ($777 million) as of April, according to data from Brazilian capital markets association Anbima. The company did not disclose the size of the Meta placement in notes to customers, and it did not immediately respond to an email request for comment.
Money manager, which started building a long standing on Meta in 2018, estimates that US audiences spent more time watching TikTok than Reels, Meta unit Instagram’s short video platform, up 20 out of three first month of the year. .
While Meta has focused on driving Reels adoption, the effort to divert attention away from the high-money features of its Facebook platform, such as feeds and stories, helps to solve the problem. enjoyed a significant deceleration in revenue growth last year, the fund wrote.
Wall Street has fallen on the Meta this year, with stocks losing more than half of their value, erasing about $500 billion in market value. Much of the fall occurred in February, when the company released a forecast that disappointed investors and warned of competition from TikTok. Last year, it announced a pivot to the metaverse, a shift in strategy with investors still confused.
The oldest fund of the Rio de Janeiro-based wealth manager, IP Joining Master FIA BDR Nivel I, has exposure to Meta through both US-listed shares and Brazilian depository receipts of the company, data compiled by Bloomberg shows. Other US bookmakers include Netflix Inc., Charter Communications Inc., Charles Schwab Corp. and Amazon.com Inc., according to the note to customers.
