Where Would Meta Be Without China?
META’s Total Revenue growth for 2023 was 16%. Excluding China, META’s 2023 Revenue growth was 11% (1st Table below). From a user standpoint, 45% of META’s users are based in China. How should one value META shares given China-related risk?
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How should one value META given that China-based Revenue is growing 8x faster than the rest of META? What discount factor should be applied to META’s China-based revenue?
Temu (China-based parent PDD) accounted for 15% of META’s 2023 China-based Revenue and 1% of META’s Total 2023 Revenue.
How should one value META given that 45% of META’s users are based in China? The CCP could turn off META access to mainland China overnight if it wished.
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