Comment by majormajor

If they overnight were able to capture as much revenue per user as Meta (about 50 bucks a year) they'd bring in a bucket of cash immediately.

But selling that much ad inventory overnight - especially if they want new formats vs "here's a video randomly inserted in your conversation" sorta stuff - is far from easy.

Their compute costs could easily go down as technology advances. That helps.

But can they ramp up the advertising fast enough to bring in sufficient profit before cheaper down-market alternatives become common?

They lack the social-network lock-in effect of Meta, or the content of ESPN, and it remains to be seen if they will have the "but Google has better results than Bing" stickiness of Google.