I remember when I started working at a factory that produces metal doors, brick making machines, and all that, I would often wonder why some machines were kept in the open to rust and deteriorate. I asked the owner of the factory why these machines were left outside in open space where rain could cause huge damage to them, and his reply was he had a plan for them. But till today they are still outside where rain could cause huge damage to them.
This must be the confusion that plagues Facebook analyst, Youssef Squali.
In an interview with Business Insider, where Youssef was asked that if given the opportunity, what would he possible ask Mark Zuckerberg, and this was his reply:
I would ask him about WhatsApp, because they spent $21 billion for that asset and right now we are not giving them any credit for it. If he’s seeing something that we’re not then it would be great for him to share.
WhatsApp is generating close to zero revenues now, they aren’t monetizing it. They have over a billion users, spending literally billions and billions of hours a month on it, but the company has not yet decided to monetize it. Maybe that’s because it’s hard, but management has not provided a tremendous amount of insight.
So just like the machines left in the open to rust, WhatsApp is doing just that, rusting. So the question is, why would you acquire something you’re not using?
Or the better question is, what is Mark’s plan for WhatsApp?