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Mark Zuckerberg once suggested spinning out Instgram as a solution to its ‘cannibalization' of Facebook

1. Zuckerberg worried Instagram may cannibalize Facebook's engagement and profitability. 2. Proposes integrating apps to function as a single network to boost Facebook. 3. Instagram's growth linked to reduced Facebook engagement, warning of network collapse. 4. FTC's trial could force Meta to spin out Instagram and WhatsApp. 5. Meta downplayed significance of Zuckerberg's emails regarding acquisition strategies.

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FAQ

Why Bearish?

Concerns over Instagram cannibalizing Facebook’s growth could deter investor confidence, similar to past FTC actions affecting stock prices.

How important is it?

The potential for structural changes within Meta affects investor outlook and confidence directly.

Why Short Term?

Negativity from antitrust trials typically yields immediate stock market reactions, impacting short-term valuation.

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