Meta Platforms (FB); Former Facebook

[behappyalways]

Meta develops real-time Hokkien speech translation AI
https://mothership.sg/2022/10/meta-hokkien-translation/

[winston]

not vested

Meta Platforms (META)

Morningstar analyst Ali Mogharabi assigns the social-media giant a wide moat and puts fair value for the stock at $346, more than 2 1/2 times recent trades at $127.

Meta’s “growth in users and user engagement, along with the valuable data that they generate, makes its platforms attractive to advertisers,” he wrote in a commentary.

“The combination of these valuable assets and our expectation that advertisers will continue to shift their spending online bodes well for the firm’s top-line growth and cash flow.”

Source: The Street

[winston]

not vested

Bank of America downgrades Meta, cuts price target as metaverse spending remains ‘overhang’

BY MARCO QUIROZ-GUTIERREZ

Concerns about advertising pressure, competition and Meta’s metaverse ambitions.

The lackluster metaverse user count stands in contrast to the nearly $15 billion Meta has so far spent on it.

Source: Fortune

https://fortune.com/crypto/2022/10/24/m ... ldatasheet

[winston]

not vested

Meta tumbles as sales forecast shows depth of ad-market weakness

Forecast for revenue in the fourth quarter that was on the low end of analysts’ estimates.

Sees US$30 billion to US$32.5 billion in revenue in the last three months of the year. Analysts had been expecting US$32.2 billion.

Meta now expects total expenses for this year to be US$85 billion to US$87 billion. For 2023, that number will grow to an expected US$96 billion to US$101 billion.

4 per cent more people spent time on Meta’s platforms every day, compared with the same period last year, with 2.93 billion daily active users. Monthly, the tech giant saw 3.71 billion active users.

In the third quarter, Meta posted revenue of US$27.7 billion, slightly beating analysts’ average estimate of US$27.4 billion. Net income fell 52 per cent from the same quarter last year to US$4.4 billion. Earnings per share were US$1.64, below the US$1.88 per share average estimate.

Source: Bloomberg

https://www.businesstimes.com.sg/techno ... t-weakness

[winston]

not vested

3Q Earnings

Meta Platforms gave a forecast for revenue in the fourth quarter that was on the low end of analysts’ estimates, showing the social media platform continues to struggle with a weak advertising market amid an economic slowdown.

The owner of Instagram and Facebook said it sees US$30 billion to US$32.5 billion in revenue in the last three months of the year. Analysts had been expecting US$32.2 billion, according to estimates compiled by Bloomberg.

This year, Meta has transformed a number of key parts of its business. As ByteDance’s popular TikTok app has won users’ time and accustomed them to a feed of vertical videos based on users’ interests, Meta has changed Facebook and Instagram’s experiences to show more algorithmically-chosen content and less from the people you follow.

Its short-form videos, called Reels, are meant to increase user engagement and revenue opportunities on the app.

Source: Phillips

[winston]

not vested

3.7 billion people now use one of Meta's apps monthly.

Instagram has more than 2 billion monthly actives.

WhatsApp has more than 2 billion daily actives.

Reels has 140 billion plays each day.

Challenging dynamics -- a volatile macroeconomy, increasing competition, ads signal loss and growing costs from our long term investments.

Facebook DAU 2b.

Three of the primary areas we're going to focus on are:-
1. AI - Reels and other recommendation experiences
2. AI - ads and business messaging platforms and
3. Future vision for the metaverse.

Reality Labs expenses will increase meaningfully again in 2023, with the biggest drivers of that being the launch of the next generation of our consumer Quest headset and hiring that's been done in 2022 but for which we'll be paying the first full year of salaries next year.

Reels: 140 b Reels plays across Facebook and Instagram each day. That's a 50% increase from six months ago.

1. Discovery engine work allows us to recommend all types of content beyond Reels as well, including photos, text, links, communities, short and long-form videos, and more.
2. Mix this content alongside posts from your family and friends, which can't be generated by AI alone.
3. More social interactions move to messaging, we're developing a flywheel between discovery and messaging that are going to make these apps stronger.

On Instagram alone, people already reshare Reels 1 billion times a day through DMs.

Instagram Reels had crossed $1 billion annual revenue run rate. We continue scaling monetization across both Instagram and Facebook, and the combined run rate across these apps is now $3 billion.

We started with Click-to-Messaging ads, which let businesses run ads on Facebook and Instagram that start a thread on Messenger, WhatsApp or Instagram Direct so they can communicate with customers directly.

This is one of our fastest growing ads products, with a $9 billion annual run rate. This revenue is mostly on Click-to-Messenger today since we started there first, but Click-to-WhatsApp just passed a $1.5 billion run rate, growing more than 80% year-over-year.

Paid messaging is another opportunity we're starting to tap into, and it continues to grow quickly but from a smaller base. We're putting the foundation in place now to scale this with key partnerships like Salesforce, which lets all businesses on their platform use WhatsApp as the main messaging service to answer customer questions, send updates, and sell directly in chat.

We also launched JioMart on WhatsApp in India and it's our first end-to-end shopping experience that shows the potential for chat-based commerce through messaging.

We just had our Connect conference and announced Quest Pro, which we just started shipping. It's our new high-end VR headset that delivers high-resolution mixed reality so you can blend virtual objects into the physical environment around you.

Work in the metaverse is a big theme for Quest Pro. There are 200 million people who get new PCs every year, mostly for work. Our goal for the Quest Pro line over the next several years is to enable more and more of these people to get their work done in virtual and mixed reality, eventually even better than they could on PCs.

To deliver a great work and productivity experience, I'm excited about the partnerships that we announced with Microsoft bringing their suite of productivity and enterprise management services to Quest, Adobe and Autodesk bringing their creative tools, Zoom bringing their communication platform, Accenture building solutions for enterprises, and more.

So between the AI discovery engine, our ads and business messaging platforms, and our future vision for the metaverse, those are three of the areas we're focused on.

Source: Mark Zuckerberg Facebook Post

[winston]

Vested. Up 1.29%

Meta Platforms Inc. (META)

The former Facebook got hammered yesterday after missing Wall Street’s expectations, reporting declining revenue for the second straight quarter, and saying it would pump more money into its metaverse initiatives next year. The stock plummeted 25%, obliterating nearly $85 billion in market capitalization.

It’s hard to believe, but META is down a whopping 70% this year, taking its market cap below $300 million for the first time in almost seven years.

That’s why it rates a “D” in my Portfolio Grader , a “Sell.” Its quantitative grade, which measures institutional buying pressure, is a bottom-of-the-barrel “F.”

The fundamental grade of “D” is only a slight improvement. There’s really nothing positive to call out right now.

Source: Investor Place

[behappyalways]

Facebook Craters 20% To 6-Year-Low After Dismal Earnings, Massive CapEx Guidance, Revenue Warning
https://www.zerohedge.com/markets/faceb ... challenges

[winston]

vested

Meta Platforms Inc. – Rising expenses continue to weigh on margins

3Q22 revenue in line with expectations, earnings miss by 12%. 9M22 revenue/PATMI at 68%/60% of our FY22e forecasts.

Earnings hurt by 19% rise in expenses; Reality Labs segment continuing losses; guided to another quarter of negative revenue growth.

We cut our FY22e revenue/PATMI forecast by 7%/23% to account for slowing revenue growth, higher-than-expected total expenses and increasing FX headwinds.

We also increased our total expenses forecast for FY23e.

We downgrade to an ACCUMULATE recommendation with a lowered DCF target price of US$113.00 (prev. US$221.00).

Source: Phillips

https://www.stocksbnb.com/reports/meta- ... n-margins/

[behappyalways]

Single Greatest Wealth Loss In History: $100 Billion Zuck-Bucks Vaporized As Meta-Bet Bombs
https://www.zerohedge.com/markets/100-b ... -bet-bombs