And Google is 90% ads.

OP wanted to use "cool" companies as examples but the actually diversified giants are Microsoft and Amazon.

Saying Google is "just" ads seems a bit disingenuous. Google controls the entire stack for ads, from the all important search, to Google network and YouTube, all the way to operating systems and the browser. That last part is important because Facebook got absolutely fucked by apples privacy changes on iOS. Google has diversified, but more importantly they're not reliant on another company's users.

>but more importantly they're not reliant on another company's users.

Must be why they paid Apple $15B last year to be default search on Safari, a mob fee that increases by the year.

And yet they're paying Apple billions to also be on iOS.

It’s 81% to be precise according to it’s Q4 earnings.

Apple's moat is much larger. The costs involved with hardware manufacture, and the need for a deep software ecosystem are challenging.

Meanwhile Facebook is "just" an app. It's pure software, and doesn't have the same ecosystem tie in. It's not a platform in the way that android/ios/windows are. Starting a new social network is much cheaper than creating a new mobile platform.

My reading of that comment is that FB itself hasn’t innovated in quite some time. FB “innovation” has come through acquisition. The core company hasn’t produced anything unique or compelling in over a decade. Instagram, WhatsApp, and Oculus were all acquisitions.

I fundamentally don’t think FB can innovate. And I don’t think the regulatory situation will allow them to continue acquiring to grow.

An example of this changing landscape is FB failed attempt to acquire Giphy. Can FB survive if they are forced to compete and innovate on their own? I doubt it.

Facebook is all ads, and Apple is much less dependent on the iPhone than it was before, and is continuing in the right direction.

Probably the most interesting thing Apple has going for investors is their move into advertising within iOS - and they’re kneecapping the competition through ATT.

They haven’t moved into advertising within iOS - that seems to be a popular falsehood these days.

And they have steadily introduced new revenue streams such as Watch, Music, TV+. Services is where it is at.

Google is search/ads. This is their cash cow. Without it, it would have gone under years ago, just like Yahoo, with a bunch of dead-end project that either make no money or go nowhere.

The social media website/phone app company gets half its revenue from one of its social media website/phone apps? Feel the diversification!