InvestIdeas

PE 13.

Analysts expecting 7% revenue growth this year, earnings are forecast to fall almost 15%. The year 2023 is rosier, with forecasts calling for an acceleration in growth, up to 16% for revenue and 18% for earnings.

At just 13 times this year’s earnings, trailing free cash flow of $39 billion and almost $44 billion in cash and equivalents.

Trading now at 12 times earnings versus a multiple of 20 for the Nasdaq 100 and 16 for the S&P 500.

The company is getting hit on many fronts, including a “massive brain drain,” regulatory crackdowns and, most crucially, slowing user growth, because everyone who wants to be on Facebook, WhatsApp or Instagram already is.

Being cautious in the short term but are extremely optimistic in the long run”.

At Meta’s current $414 billion market valuation, buyers of Meta shares are getting a business that earned $39 billion last year.

From a valuation perspective, that equates to a 9.4% earnings yield based on trailing earnings ($39 billion / $414 billion = 9.4%).

Last year, Meta generated $57 billion in cash flow from operations.

At the current valuation, Meta shares have a 13.8% operating cash flow yield ($57 billion / $414 billion = 13.8%).

He expected "one of the worst downturns that we've seen in recent history".

The firm only plans to hire between 6,000 and 7,000 new engineers in 2022, against an initial project of 10,000 new recruits, indicates Reuters. It is therefore a revision of 30% to 40%.

First-quarter revenues of $27.908 billion, up 6.6% year over year, missing analysts estimates of a $28.2 billion tally.

Ad revenues were up 6.1% to $27 billion.

Suffered its first-ever decline in daily active users last quarter, rose 4% from last year at 1.96 billion, just ahead of the Street consensus of 1.951 million.

"Avatars and Horizon Worlds + Platform remain the key priorities, and our focus now is on execution".

Horizon Worlds is Meta's social metaverse platform for Quest VR headsets.

Reality Labs, the division that houses Meta's metaverse plans, posted a $2.96 billion loss on revenue of $695 million.

Monetizing Reels and meeting the challenges posed by new privacy changes are also in the strategic roadmap.

The DMA targets the lack of competition in digital markets; the DSA is concerned primarily with transparency and consumer protection.

Meta also intends to focus on artificial intelligence, monetize its products and services and add new services to WhatsApp and Messenger.