Ashley Capoot’s Post

Meta tumbles 12% on weak revenue forecast and Zuckerberg’s comments on spending Meta shares tumbled 12% Thursday morning after the company issued weak revenue guidance that overshadowed its first-quarter earnings beat. The stock was trading at about $430 at 11 a.m. ET, wiping out roughly $161 billion in market cap from its $493.5 closing price before earnings on Wednesday. The company reported $4.71 in earnings per share on $36.46 billion in revenue for the quarter, exceeding the $4.32 in expected earnings per share and $36.16 billion in expected sales, according to LSEG. The stock sell-off gained pace in extended trading on Wednesday after CEO Mark Zuckerberg discussed spending in areas such as artificial intelligence and mixed reality that are not currently profitable. Meta expects second-quarter revenue of $36.5 billion to $39 billion. The midpoint of the range, $37.75 billion, falls short of analysts’ average estimate of $38.3 billion. https://lnkd.in/dizKG8nm

Hot off the press. 🔥 Meta’s Q1 was a top-and-bottom line beat, but the stock is down 18% on guidance that was lower than consensus. It’s a big week for tech; tech gives brand insights & dramatically moves the overall market. Big tech has seen earnings accelerate on leaner cost structures. ⭐️Q1 Results: ▪️EPS - $4.71 per share vs. $4.32 per share expectations ▪️Revenue: $36.46B vs. $36.16B expected ▪️Advertising was +27% (brands are still spending) “Meta is benefiting from a stabilizing economy and surge in spending from Chinese discount retailers like Temu and Shein - which have been pumping money into Facebook and Instagram.” Some analysts have warned that slower spending from China-based advertisers could be a source of concern in the first quarter and as the year progresses. ⭐️Q2 guidance: ▪️$36.5 billion to $39 billion. The midpoint of the range, $37.75 billion, would represent 18% year-over-year growth and is below analysts’ average estimate of $38.3 billion. #futureofcommerce #tech #advertisings #brands #businessnews https://lnkd.in/gqgEEEa4

Astounding last Q results from Meta: *Earnings per share: $5.33 vs. $4.96 expected by LSEG, formerly known as Refinitiv *Revenue: $40.1 billion vs. $39.18 billion expected by LSEG *Daily active users (DAUs): 2.11 billion vs. 2.08 billion expected, according to StreetAccount *Monthly active users (MAUs): 3.07 billion vs. 3.06 billion expected, according to StreetAccount *Average revenue per user (ARPU): $13.12 vs. $12.81 expected, according to StreetAccount

🔍 Meta's Q4 Growth: Beyond the Numbers 🤔 While Meta's Q4 report shows impressive user growth, a deeper look raises some questions. Historically, Meta faced challenges in North America with reports of negative growth. Moreover, the company's past issues with metrics, like inflating video view counts, cast a shadow of doubt on these new numbers. Is history repeating itself? 🌏 The growth is attributed mainly to overseas and emerging markets, not from its traditional strongholds. This shift suggests that Meta's user base is evolving, possibly due to market saturation in established regions. 💼 Mark Zuckerberg's recent remarks about increasing performance goals to weed out employees "who shouldn't be here" indicate internal shifts at Meta. This approach, aimed at navigating through what he termed as "one of the worst downturns," speaks volumes about the company's current state and future direction. 💡 The Q4 report, contrastingly, paints a more positive picture, with Meta reporting a surge in ad revenue driven significantly by advertising from Chinese companies. While this uptick is noteworthy, it's important to remain cautious, given Meta's historical context and the broader economic situation. 🇨🇳 Meta's Q4 growth, especially in ad revenues driven by Chinese companies, presents an intriguing dichotomy. Despite Meta's services being banned in China, the company still draws substantial revenue from Chinese advertisers. These entities, ranging from e-commerce giants to government offices, use Meta's platforms to reach global audiences. This reliance on Chinese advertisers for revenue growth is noteworthy, particularly as Meta's user growth and ad revenues in traditional markets have been declining. It reflects a complex interplay of geopolitical, regulatory, and business dynamics, underscoring the global and interconnected nature of digital advertising. 📈 Furthermore, the ad supply on Meta’s platforms is expected to continue soaring in 2024. With a huge uptick in impressions, especially on previously under-monetized platforms like Instagram’s search results and Reels, there's an indication of an oversized ad supply. This growth might impact the pricing structure, potentially leading to changes in cost per impression (CPM) or cost per click (CPC). https://lnkd.in/djQyCBcX #Meta #DigitalEconomy #MarketInsights #facebook #digitalamarketing

Meta just tallied its most profitable quarter—and year—ever, the #Facebook parent revealed in its fourth-quarter earnings report, an impressive feat considering the company’s 2022 beating reflected in its stock’s record run-up in recent months, though scars remain from billionaire CEO #MarkZuckerberg’s panned pivot into the “metaverse.” The per share profit metrics are gaudier than reality due to Meta’s massive stock buybacks—the company’s 2023 net income of $39.1 billion fell short of 2021’s record $39.4 billion—but it still marks a rapid turnaround from Meta’s painful 2022, as the company’s #earnings per share expanded 203% year-over-year in the three-month period ending last month. https://trib.al/I49Xycs

Meta shares jump 15% after profit triples and company announces first-ever dividend Meta shares jump on better-than-expected results and first-ever dividend payment. Investors are looking for signs that Meta’s online advertising business continues its rebound from a brutal 2022. Sales in the fourth quarter jumped 25% year-over-year while expenses decreased 8% year-over-year to $23.73 billion.

**Heads up for growth stock investors: Meta's recent weak revenue guidance for the upcoming quarter is a reminder of the importance of future outlook in growth companies. When analyzing growth companies, delve into their income statement and balance sheet to understand their revenue streams and future performance expectations.** #trading #stockmarket #meta #earnings

META's share price nosedives post Q1 2024 results in aftermarket trading. This begs the question, is now the time to buy? Overall, it was a strong quarter. Both the yoy revenue growth of 27% and 38% operating margin were impressive. The company reported EPS of $4.71 and revenue of $36.46b, beating the street on both counts. Additionally, Family daily active people (DAP) was 3.24b, increasing 7% yoy. I'm actually amazed that this number can keep rising. However, the problem was the company forecasted full-year capex to $35-40b up from prior guidance of $30-$37b. The street and the majority of professional investors play the quarterly game. Nobody wants to see higher capex spending in the near-term on AI or the metaverse that won't generate revenue in the next quarter or two. Fortunately, as a private investor you can afford to play the long game. You want to own founder-led companies, which ensures that your interests are aligned with management. Zuckerberg has proven in the past to be a good allocator of capital and has a track record of monetizing his capex spend. I think the dip in the share price is an overreaction. The shares are currently trading at 18.6 FY25 EPS, which is a relative bargain. I've got a bull put spread trade on the shares currently. However, I'm looking to start a long position in the stock based on yesterday's correction. Analyst’s Disclosure: I/we have a beneficial long position in the shares of META, GOOG either through stock ownership, options, or other derivatives. I wrote this post myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.