$META Reels Opportunity is Huge
From $META earnings call. Reels comprise about 26% of users’ time on their apps but only have a $1 bn run rate. If they’re able to monetize reels as effectively as the rest of $META that would equal about $40bn in revenue. The opportunity is huge if they execute.

Joshua Simka's avatar
Whether on TikTok, IG, or FB I can tell you from experience those reels are pretty addictive and a major time suck. 😵‍
Zack Morris's avatar
Totally agree. This is a playbook $META has run before (copy features, increase engagement and cannibalize revenue for a bit, then monetize at new, higher rates than ever before) with much success. I don't think there's any reason to believe Reels won't be the same.

Over the weekend Loup Ventures echoed your sentiment: https://loupfunds.com/metas-next-five-years-comes-down-to-reels/

They also touch on what I believe is the ultimate $META bull case that is mispriced today: TikTok will inevitably be banned in the US...