Meta stock

Of all FAANG stocks, Meta (NASDAQ:META) had the most depressing 2022, with the shares contracting by 65% over the course of the year.

It all amounts to a positive assessment of Meta’s prospects, especially considering the lowered expectations. And going by the recent workforce reductions, Meta appears to be taking a more prudent approach to investments. Against this backdrop, between FY22 and FY30, Black is looking for revenue CAGR (compound annual growth rate) of ~8%. It is very important to do your own analysis before making any investment. As such, between FY22 and FY30, Black sees EBITDA margins expanding by 600bps from ~44% to ~50%. The downturn was driven by several headwinds including softness in the broader ad market, the ongoing rise of rival TikTok, exposure to IDFA and the continued losses as a result of chasing its metaverse ambitions.

The stock spiked more than 18% in after-hours trading after the company beat its fourth-quarter revenue estimate by about $700 million.

[ social media companies](https://www.forbes.com/sites/dereksaul/2023/02/01/snap-losses-top-115-billion-as-company-struggles-to-live-up-to-show-me-moment/?sh=799f4d151c0b). Spokesman Nick Clegg said in a statement the company doesn’t believe Trump’s presence poses the same “serious risk to public safety” that it did shortly after the storming of the Capitol. Meta [ cut around 11,000 jobs](https://www.forbes.com/sites/roberthart/2022/11/09/meta-confirms-layoffs-11000-jobs-cut-at-facebooks-parent-company/?sh=3d5934161280)—13% of its workforce—in November and extended a hiring freeze through the start of 2023 as cost-cutting measures. [Snap Losses Top $115 Billion As Company Struggles To Live Up To ‘Show Me’ Moment](https://www.forbes.com/sites/dereksaul/2023/02/01/snap-losses-top-115-billion-as-company-struggles-to-live-up-to-show-me-moment/?sh=799f4d151c0b) (Forbes) [Does Mark Zuckerberg Not Understand How Bad His Metaverse Looks?](https://www.forbes.com/sites/paultassi/2022/08/17/does-mark-zuckerberg-not-understand-how-bad-his-metaverse-looks/?sh=1393374d37d4) (Forbes) [Meta Confirms Layoffs—11,000 Jobs Cut At Facebook’s Parent Company](https://www.forbes.com/sites/roberthart/2022/11/09/meta-confirms-layoffs-11000-jobs-cut-at-facebooks-parent-company/?sh=3d5934161280) (Forbes) [Trump Reinstated To Facebook And Instagram](https://www.forbes.com/sites/nicholasreimann/2023/01/25/trump-reinstated-to-facebook-and-instagram/?sh=6def2f4552e0) (Forbes) But his vision has largely failed to impress investors, as the company’s metaverse-centered Reality Labs unit lost more than $9 billion in the first three quarters of 2022 and Zuckerberg’s demonstrations of the [ metaverse were widely mocked](https://www.forbes.com/sites/paultassi/2022/08/17/does-mark-zuckerberg-not-understand-how-bad-his-metaverse-looks/?sh=1393374d37d4). [ Facebook and Instagram accounts](https://www.forbes.com/sites/nicholasreimann/2023/01/25/trump-reinstated-to-facebook-and-instagram/?sh=6def2f4552e0), which were banned for two years following the January 6, 2021 attack on the Capitol.

Meta stock jumped late Wednesday after reporting fourth-quarter results that fell short on earnings but beat on revenue.

Facebook just reached the milestone of 2 billion daily actives," Meta Chief Executive Mark Zuckerberg said in a written statement with the earnings release. But the company made technology improvements with its ad strategy approach. Meta stock soared as the company announced a $40 billion stock buyback. "Our community continues to grow and I'm pleased with the strong engagement across our apps. The midpoint of $27.25 billion is above estimates of $27.1 billion. [Relative Strength Rating of 72](https://www.investors.com/news/technology/meta-platforms-trying-to-close-in-on-key-technical-measure/) out of 100. An earnings comparison with analyst estimates was not immediately available due to restructuring charges reported by the company. For its first quarter, the company expects revenue in the range of $26 billion to $28.5 billion. [SNAP](https://research.investors.com/quote.aspx?symbol=SNAP)), Etsy ( [ETSY](https://research.investors.com/quote.aspx?symbol=ETSY)) and Pinterest ( [PINS](https://research.investors.com/quote.aspx?symbol=PINS)), Meta is challenged not only by macroeconomic weakness but also by a painful drop in digital advertising, which accounts for almost all of its revenue. Analysts expected revenue of $31.55 billion, according to FactSet. [AAPL](https://research.investors.com/quote.aspx?symbol=AAPL)) changed privacy policies for the iPhone. [cut 11,000 jobs](https://www.investors.com/news/technology/meta-stock-climbs-as-mass-layoffs-revealed/).

Meta shares soared Wednesday despite an earnings miss, as the Facebook parent company guided for potentially more revenue than Wall Street expected.

He recommitted to Meta’s emphasis on AI and the metaverse, a platform for “better social experiences” than the phone, he said. But they also arrived on the same day Facebook scored a major win in a California court. Meta executives said they now expect operating expenses to be $89 billion to $95 billion this year based on slower salary growth, cost of revenue, and $1 billion in savings from facilities consolidation — down from previous guidance for $94 billion to $100 billion. [GOOGL, +1.61%](/investing/stock/GOOGL?mod=MW_story_quote) [GOOG,](/investing/stock/GOOG?mod=MW_story_quote)Google and Pinterest Inc. Analysts polled by FactSet expected Meta to post fourth-quarter revenue of $31.55 billion on earnings of $2.26 a share, and the beat on sales coincided with a revenue forecast that also met or exceeded expectations. “At first glance…Meta getting its mojo back,” Baird Equity Research analyst Colin Sebastian said in a note late Wednesday. [AAPL, +0.79%](/investing/stock/AAPL?mod=MW_story_quote)ad-tracking system in 2021 that punitively harmed Meta, costing it potentially billions of dollars in advertising sales. Meta expects to increase its spending on its own stock. “Our community continues to grow and I’m pleased with the strong engagement across our apps. The cost cuts seemed to pay off Wednesday. “The progress we’re making on our AI discovery engine and Reels are major drivers of this. Earnings were $4.65 billion, or $1.76 a share, compared with $10.3 billion, or $3.67 a share, last year.

Meta is all-in on becoming a lean, mean cash-printing machine. In its Q4 earnings call on Wednesday, Meta CEO Mark Zuckerberg described the company's near ...

Yes, but: The company still lost money last quarter compared to the same quarter in 2021.

- Reality Labs lost $4.27 billion last quarter, bringing its total losses for the year to $13.71 billion. We're going to take the same approach there as well." - "I do think that our philosophy of building these consumer products, focusing on getting them to hundreds of millions or billions of people and then focusing on monetization beyond that ... - Monthly Active Users (MAUs): 2.96 billion vs 2.98 billion expected, according to StreetAccount - Daily Active Users (DAUs): 2 billion vs 1.99 billion expected, according to StreetAccount Details: Meta reported $4.2 billion in restructuring charges for the fourth quarter and says it expects to spend another $1 billion on restructuring costs for the year.

Well that was certainly a surprise! Heading into earnings Wednesday evening, analysts polled by The Fly had predicted that Meta Platforms (NASDSAQ:META) ...

Despite reporting a 4% year over year decline in revenue in Q4 (total revenues dropped only 1% for the year), a 22% increase in costs (23% for the year), and a staggering 52% decline in per-share profits (38% for the year), Meta undeniably beat earnings estimates with a stick. Earnings for Q4 (down 52%) were also worse than full-year earnings (down 38%). As it turned out, Meta missed the earnings estimate, at least, by a metric mile, reporting profits of only $1.76 per share — a $1 billion-wide earnings miss. It is very important to do your own analysis before making any investment. Sales for the quarter, remember, were worse than for 2022 as a whole — down 4%. Investors broke out in applause.

Meta Platforms Inc. reported better-than-expected sales during the holiday quarter, fueled by strong demand for advertising as it attracted more users to ...

In this market, the last thing investors have been rewarding this earnings season is a bottom-line miss vs. expectations of any magnitude.