Last month, Meta lost $232Bn in market value after releasing its first-quarter earnings report, which displayed a sharp decline in profits. It is the single biggest one-day decline for a stock in U.S. history. The reasons for this drop are manifold: the rise of TikTok, plummeting daily active users, and inflation are partly to blame. Yet Zuckerberg also cited Apple’s ad-tracking changes, introduced a year ago, as costing Meta upwards of $10Bn this year alone.
It’s a seemingly small change: in an effort to respect user privacy, Apple users are now encouraged to choose whether or not they’d like to be tracked by the apps on their phone. But it has a huge effect on how companies run targeted ad campaigns. Meta criticised the move, arguing that SMBs will be most hurt by these changes, but Apple’s decision is clearly wreaking havoc on their investor earnings report. $10Bn dollars worth of havoc.
When we discussed the report as a team, it struck us that another way to look at this number is that there is now an additional $10Bn on the table for early-stage founders in the e-commerce tooling space. This, combined with the pandemic-fuelled rise of e-commerce which is expected to grow 16% to $6Tn by 2025, creates game-changing opportunities for innovation.
At Seedcamp, we’ve partnered with several exceptional companies across the lifecycle of a merchant’s and customer’s e-commerce journey, from the pre-sale to sale and post-sale function. Within e-commerce enablement, we are particularly excited about three key trends: (Read more...)