Facebook faces “existential threat” as regulators, tech partners, the public all take aim
Is it sacrilege to say it’s time to dump Facebook stock? After all, Facebook has been awfully good to investors, averaging a steady 39% gains per year since 2012. But it might be time to say goodbye, just like financier Peter Thiel, whose early stake in Facebook made him a billionaire. Thiel has quietly shed nearly all his shares recently, more than $1 billion worth.
He’s not the only one.
Legendary fund managers George Soros and Leon Cooperman completely cashed out of Facebook.1
Even founder/CEO Mark Zuckerberg is offloading shares. Since the first of the year he has made 70 transactions totaling nearly three quarters of a billion dollars, selling just a little at a time to avoid too much attention.
WHAT DOES IT MEAN? Maybe Facebook insiders see the writing on wall. Because the truth is, Facebook is staring down a whole passel of problems. Problems that Zuckerberg calls a “existential threat” to the company.2
Is Facebook the next MySpace?
FACEBOOK’S PROBLEMS TODAY ARE BIG, enough to show the world that Facebook is not too big to fail. If that seems unlikely, remember that no one thought social media pioneers MySpace or Friendster could ever fail either.
When Friendster shut down over growing user distrust of the site, users flocked to MySpace, which became so successful that by 2005 it had more users in the U.S. than Google.3
That wouldn’t last, though. Rampant technology problems led users to abandon MySpace for newcomer Facebook.
Now it looks like the pattern might repeat, and smart investors will pay attention.
As the problems mount for Facebook’s business model, another company with a new model is gaining traction.
It’s more respectful of users’ privacy, and it offers advertisers better results.
That’s a win-win and is fueling the growth of a company that has developed a disruptive digital platform that rewards both users and advertisers.
And unlike Facebook, it isn’t built on a model that runs afoul of regulators, industry partners, or the public.
Governments, tech industry, and the public all have Facebook in their target
- Government Regulators – Right now CEO Mark Zuckerberg is sweating through government antitrust investigations in countries all around the world, including major economies like the U.S., the European Union, Canada, and Australia. The Internet Policy Review judges that Facebook “would be most likely to fail” if regulators rein in its data harvesting practices.4
- Tech Industry – Fellow tech giant Tim Cook of Apple has lowered the boom on Facebook’s shameless harvesting of private user data. From now on, anyone downloading the Facebook app onto an Apple device can opt to block Facebook from tracking personal information. Facebook sees this as an “existential threat” to its business model, notes tech analyst Ross Rubin.5
- The Public – Facebook users are fleeing in droves. The platform has lost close to 30% of the key teen demographic in the U.S. And there are signs the outflow will soon grow to a flood. A recent survey found that 57% of Americans believe Facebook is “primarily a harm to society.” And even more, 69%, say it has “too much power.”6
For all these reasons and more, Facebook could be facing some serious revenue loss.
The Apple privacy change could cost as much as $8 billion in lost revenue this year alone.
On top of that, EU regulators have put the kibosh on milking every bit of private detail technologically possible from its users. That’s going to hurt.
In a recent earnings call, chief financial officer Dave Wehner warned investors that the new EU policy “could impair our ability to operate material portions of our business in Europe.”
Between the Apple and EU changes, “we do expect there to be high opt-out levels,” he said. The company also “expects advertisers to fall off as the restrictions on data harvesting on iOS devices are implemented,” he added. – Oops.
As People Abandon Facebook in Droves What Happens With Their $84 Billion10 In Advertising Dollars?
It relies on choice and the sensation players get when they earn something while playing the games or watching the content they love.
“Traditional ads disrupt the user experience. If real-world products could instead be integrated into games and apps as opt-in rewards, the experience for the user could be made seamless. The prizes could even make the games and apps even more fun.”
– Matthew Pierce – Versus CEO
Versus Systems blurs the line between rewards and ads, making it more rewarding for everyone involved – viewers, advertisers, publishers. Everybody wins.
Real-World Rewards Inside Live Events, Streams, Games, and Apps.
After building their technology with interactive audiences and gamers at the center, rather than relying on outdated banner ads, and commercials from the days of radio and television, Versus Systems is now moving their patented platform into television, streaming, and live events.
As if gaming and apps were not enough, Versus Systems recently partnered with Xcite Interactive, makers of second-screen entertainment for NBA, MLB, NHL, and NFL teams like the LA Rams, the Pittsburgh Penguins ,and the New York Yankees.
With this recently announced partnership, Versus will bring its proprietary rewards software to millions of fans worldwide.
Audiences all over the world, watching their favorite sports teams, as well as their favorite streams on YouTube and Twitch, will be able to play trivia, predictive games, and be able to weigh in on real-time events LIVE during their favorite events, or even during hit shows.
According to Neilsen, 88% of Americans already watch a second screen while they watch TV – and now, with Versus technology, that second screen activity can earn audiences real-world rewards from global brands, and from local merchants.
With this new technology, fans can complete tasks or achievements directly inside digital games and apps they already love. When they win, they get rewarded with gift cards, discounts, or other real-world prizes to be redeemed online or in-store.
Rather than just forcing a user to view a brand’s ad, they get incentivized to engage with that brand as part of the show, event, or as part of their gaming or app experience. As you can imagine, this creates a much more positive experience which builds stronger brand loyalty — a big win for the advertisers and the viewers.
And what they’ve found out is it works. It really works.
Big Name Brands Have Been Blown Away By Versus System's Pioneering Ad Platform
In fact, in one test, 97% of Versus Systems’ users said that adding real-world rewards to the game they played actually made the game more fun.
The opt-in nature of the platform, combined with the fact that audiences can earn their rewards through their efforts changes the entire experience of advertising from one of “do I have to watch this?” to “I hope I win!” And this shift makes a HUGE difference at the register for brands hoping to reach the elusive interactive media consumer
The brands and content partners working with Versus were thrilled:
- White Castle, a national quick-service restaurant chain, used the Versus system to achieve a transaction rate that was more than 60 times higher than industry standards, in addition to a 280% growth in incremental purchases.11
- And a top game publisher’s NASCAR game saw a 44% increase in user session time and a whopping 15 minutes of advertiser brand exposure per game when using the Versus system.12
- Teams like the Pittsburgh Penguins and the LA Rams have seen millions of new incremental advertising impressions from engaged fans that are watching, clicking, playing, and engaging with branded team content in-stadium and at home.
A Worldwide Deal With HP Truly Puts Versus Systems on the Map
Versus Systems has already given away over half a million prizes over millions of game sessions.
And thanks to a multi-year contract with computing giant HP, the Versus rewards system now comes pre-installed in all HP OMEN and HP Pavilion computers.
This massive deal allows versus to tap directly into the $159 billion global online gaming market.
Thanks to the company’s stronghold of loyal users in the United States, where it holds almost 30% market share, HP remains the most popular laptop manufacturer in North America.13
Judging by preliminary reports, released in January 2021, during 2019’s second quarter, HP saw a 3.2% year-over-year growth globally, with Europe, the Middle East, Africa, the United States, and Japan accounting for the lion’s share.14
The Versus Systems Platform Has Worldwide Implications
With its dominant position in the digital game market secure and growing, Versus Systems is already branching out into other lucrative markets.
The Versus rewards system can enhance any interactive content.
From live events, online education or corporate training, political surveys and even popular quizzes on websites like Buzzfeed.com, there are countless opportunities to better engage users with the Versus rewards system:
- Your fitness app could reward you with a new Adidas workout hoodie for accomplishing your daily step goal.
- Your streaming video service could reward you with a free pizza when you watch their new hit show.
- Your favorite sports team could reward you with prizes in-stadium while you’re at the game OR send you rewards like pizza, team merchandise, or tickets to the next game while you watch the game from home.
- Your audiobook app could reward you with a free download after you have listened to 10 book titles. The possibilities are endless.
And Like Most California High-Tech Startups, Versus Systems Has A Big-Time Pedigree
As you’d expect, you’ll find a band of brilliant people are at the heart of a groundbreaking startup such as Versus Systems.
They’re the Stanford and Cal Tech types who’ve been top executives at trailblazing companies such as Marvel, Warner Brothers, Electronic Arts, Vox Media, BuzzFeed, Amazon Web Services, and Netflix, to name a few.
With the combination of a hot new trend, breakthrough technology, and some of the business’s most innovative minds, it’s no wonder the company was so warmly welcomed recently onto the NASDAQ stock exchange.
Unlike so many other small-cap companies that putter along in the shadows, moving to the NASDAQ is the company’s nod to technology-minded investors that it’s aiming for global dominance.
Because as tech and trend investors know, the legendary technology moonshots generally find a home on the NASDAQ launch pad.
Versus Systems is also a reminder of the single, most powerful truth for building wealth – no matter the investment:
It’s not where the world has been; it’s where the world is going.
In Technology, IP is EVERYTHING
There’s one final item that gives Versus Systems (NASDAQ: VS)(NASDAQ: VS) a monstrous advantage over its giant and lumbering competitors on the NASDAQ. In technology, you beat the competition senseless with intellectual property.
In this case, Versus Systems has already locked up three patents, representing 50 granted claims, behind its technology.
Many of the granted patent claims deal specifically with what Versus calls “Dynamic Regulatory Compliance.” This is the ability of Versus Systems’ advertising platform system to adjust the prizing options for every player and user, in every game or app, based on characteristics like game type and player location.
Critically, this allows Versus Systems to manage the legal and regulatory issues associated with prizing in real-time while also providing relevant and valuable prizes to each player based on their specific circumstances.
Another of the granted patents protects a host of issues around location-specific rewards – the crucial “geolocation technologies” that allow Versus Systems to hyper-target prizes based on a user’s location.
- Management – There’s a reason why high-tech startups spring from the West Coast: its talent. In Versus Systems’ case, its top executives are trailblazing mega- stock-market winners from companies such as Marvel, Warner Brothers, Electronic Arts, Vox Media, BuzzFeed, Amazon Web Services, and Netflix, to name a few.
- A Wide Open Market – Versus Systems is a first mover, already with notable success in the massive $478 billion interactive media ad market, and that’s just the beginning…
- Technology – Versus Systems platform is compatible with IOS, Android, laptops, desktops, and smart TVs.
- Partners – Versus is already partnered with some of the world’s most exciting and sought-after content from the NFL, MLA, NHL, and NBA teams!
- And, Get This! – The audience actually invites the advertisers in. That’s revolutionary and, when applied to other apps, could disrupt the advertising industry forever.
- And, Get This II – Versus Systems controls the patents to this groundbreaking technology.
- High-Powered Deal With HP – HP sells about 40 million computers a year globally, with HP now loading Versus Systems onto all of its OMEN and Pavilion computers. This is, to put it plainly, huge.
- NASDAQ Listing – The NASDAQ has been the launching pad for most of the world’s most significant, high-flying technology companies. It’s where all of the leading tech companies trade.
- By The Numbers – It’s time to get on board with Versus Systems (NASDAQ: VS)(NASDAQ: VS) now because, since late June 2020, its market cap has tripled to just shy of $100 million.
Chances Are Slim There Will Be Any Better Investment In 2021 Than Versus Systems (NASDAQ:VS) Because It Gives You Immediate Access To The $159 Billion Online Gaming Industry Right Now With Endless Upside
This a rare moment in time for technology investors.
There’s a new tech stock on the NASDAQ, and while investment bankers have found it, it’s still overlooked. That makes now the time to move.
Moreover, chances are today’s share price could be the lowest you’ll have the opportunity to buy Versus Systems (NASDAQ:VS). That could give you a chance to put yourself among its earliest and biggest winners.
But please, before you do take any action, make sure to show your investment advisor or broker a copy of this story. Then, chances are, you’ll both agree that Versus Systems (NASDAQ: VS)(NASDAQ: VS) is a high-potential tech sector play.
11 https://static1.squarespace.com/static/58eec7ff6b8f5b2252e9ab4c/t/5e597b623ca1436a76e8dbc3/1582922648079/ WhiteCastle_CaseStudy.pdf
12 https://static1.squarespace.com/static/58eec7ff6b8f5b2252e9ab4c/t/5e5971572c202b5196e5c2af/1582920068615/NASCAR_ CaseStudy.pdf
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