Meta Platforms (FB); Former Facebook

[winston]

not vested

Mark Zuckerberg showed these prototype headsets to build support for his $10 billion metaverse bet

by Kif Leswing

KEY POINTS

Meta, formerly Facebook, expects to spend at least $10 billion this year on research and development on virtual reality and augmented reality technologies.

CEO Mark Zuckerberg on Monday showed off how much progress the company has made by revealing many of the unfinished headset prototypes it has built in its labs.

Source: CNBC

https://www.cnbc.com/2022/06/21/mark-zu ... idappshare

[winston]

not vested

Meta Platforms Stock: Value Trap or Screaming Buy?

by BRET KENWELL

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.

Source: The Street

https://www.thestreet.com/investing/met ... ming%2BBuy?

[winston]

not vested

Meta Plunge Lures Value Buyers as Growth Funds Flee

by Subrat Patnaik and Ryan Vlastelica

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”.

Source: Bloomberg

https://finance.yahoo.com/news/meta-plu ... 41657.html

[winston]

not vested

Meta Platforms (META) is “Extremely Undervalued”

by Jody Chudley

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%).

Source: Wealthy Retirement

https://dailytradealert.com/2022/06/29/ ... dervalued/

[winston]

vested

From Boyar Value Group in its Q4 2021 investor letter:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more) but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top.

Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms Inc. (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

[winston]

vested

Mark Zuckerberg Makes a Dark Prediction

by LUC OLINGA

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.

Source: The Street

https://www.thestreet.com/technology/ma ... Prediction

[winston]

not vested

Mark Zuckerberg Sets Facebook's Top Priorities

Social-media giant Facebook wants to focus on six important areas as its CEO expects "one of the worst downturns" in recent history.

by LUC OLINGA

"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.

Source: The Street

https://www.thestreet.com/technology/ma ... Priorities

[winston]

not vested

Meta Platforms (META)

The company showed a definite slowdown at the top line; revenues slipped 17% from Q4. At the same time, revenues rose year-over-year, with the top line of $27.9 billion coming in 7% higher than 1Q21’s $26.1 billion.

The company’s net income fell, with diluted EPS dropping y/y from $3.30 to $2.72, a loss of 18%.

Growth in monthly average users (MAUs) started to plateau just under 3 billion. In the first quarter of this year, the company reported just 3% growth, to 2.94 billion MAUs.

Where the NASDAQ has fallen 26% year-to-date, META is down 50%.

Tigress analyst Ivan Feinseth rates the stock a Buy along with a $466 price target.

"META has a significant upside driven by the ongoing potential to monetize many of its critical applications and technologies, including Instagram, Messenger, WhatsApp, and Oculus.

28 other analysts join Feinseth on the bull list and with another 7 Holds and 2 Sells, the stock has a Moderate Buy consensus rating.

While the average price target is not as optimistic as the Tigress analyst’s, at $265.86, the figure could still provide gains of 59% over the 12-month timeframe.

Source: Tip Ranks

[winston]

not vested

Analysts Consider Meta Platforms Undervalued And A Recession Hedge

by MATTHEW NORTH

The main criticism the stock has received is due to its slowing revenue growth, fierce competition from TikTok, and its Metaverse investment that likely will not pay off until 2030.

The stock had a peak quarterly EPS of $14; during this time, its P/E was 24.24. Today its P/E stands at just under half that at 12.68 with a slightly reduced EPS of $13.19.

Meta's YoY quarterly growth has fallen sharply for three straight quarters, from 55.60% in Q3'21 down to just 6.64% for Q1'22.

The company has a strong balance sheet with $43.89B worth of cash.

Source: Market Beat

https://www.marketbeat.com/originals/an ... 4A8F75D6B5

[winston]

Meta falls as sales miss estimates in first-ever quarterly drop

by Alex Barinka

Every day, 2.88 billion people are using one of Meta’s social networks.

Reels is currently bringing in advertising revenue at an implied rate of $1 billion a year.

The Reality Labs division, focused on virtual and augmented reality, posted revenue up 48% to 452 million, boosted by headset sales. The unit also reported a loss of US$2.81 billion.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... terly-drop