FB is nuts. Bears focused on the slowing growth ,ignoring that Facebook is making $40/billion profit in a year, which is just astounding. That's 3x Walmart. You don't need much growth when you have so much profit and market dominance. Buying Facebook stock with a PE ratio of 13 , cheaper than any 'blue chip' company, was a steal. $400-600 soon imho.
Stock is up 18% after hours.<p>Revenues and earnings:<p>- Daily Active Users 1.96BN, beating Est. of 1.94BN, up 4% Y/Y<p>- Monthly Active Users 2.94BN, missing Est. 2.95BN, up 3% Y/Y<p>- EPS $2.72, beating estimate $2.56<p>- Revenue $27.91 billion, beating estimate $28.24 billion (Bloomberg Consensus)<p>- Advertising rev. $27.00 billion, missing estimate $27.48 billion<p>- Family of Apps revenue $27.21 billion, missing estimate $27.52 billion<p>- Reality Labs revenue $695 million, beating estimate $677.1 million<p>- Other revenue $215 million, beating estimate $189.3 million<p>A red flag here: yes, revenue grew 7% YY, but that was the slowest pace of growth since the company went public in 2012. Meanwhile, US revenue barely grew in Q1 at $12.671BN, up from $12.405 BN.
Interesting. Like I said, I think it is quite too early to write Meta off. [0] Even looked at that <i>'screaming buy signal'</i> when it got lower than at least around $200 to around $190. [1]<p>Seems like lots of gamblers got wiped out after this earnings result thinking that Meta was finished.<p>In this case the tables have turned and it is not over yet.<p>[0] <a href="https://news.ycombinator.com/item?id=30185992" rel="nofollow">https://news.ycombinator.com/item?id=30185992</a><p>[1] <a href="https://news.ycombinator.com/item?id=30186098" rel="nofollow">https://news.ycombinator.com/item?id=30186098</a>
After hours P/E ratio is about right.<p>There is no reason to expect growth better than the Nasdaq composite for the foreseeable future.<p>1) Due to ownership structure and personalities, the path to new ideas through leadership is closed. Zuckerberg is not going to change or leave if Meta disappoints in the future.<p>2) Meta can't by market share anymore thanks to regulators in all major markets being finally awake, led by EU. The benefit of using size as leverage is dwindling.<p>3) Meta has never created major new innovation/product in-house after Facebook. Metaverse is extremely unlikely to succeed against competition. Discount fruitless R&D from profits.<p>4) Meta continues to make money due to network effect, economies of size. Meta is like an oil company pumping until Facebook + Instagram well runs dry.
$9.39 billion Class A common stock shares were repurchased. That is 2% of Meta's market cap. And they still have more to repurchase!<p>As of March 31, 2022, FB had $29.41 billion available and authorized for repurchases.
I don't see any mention of regulations coming down on Facebook for the bear case. Same goes for Google. US law will regulate them after following EU's. I think it's very likely once we get more tech literate politicians in place
Earnings breakdown and why FB stock is up 17% after hours:<p><pre><code> * Earnings per share: $2.72 vs $2.56 expected
* Revenue: $27.91 billion vs $28.2 billion expected
* Daily Active Users (DAUs): 1.96 billion vs 1.95 billion expected
* Monthly Active Users (MAUs): 2.94 billion vs 2.97 billion expected
* Average Revenue per User (ARPU): $9.54 vs. $9.50 expected
</code></pre>
As of market close today, FB shares had lost almost half their value in 2022.
The big unknown with Meta is the Multiverse/VR plans Zuckerberg has. How much of the company's reserve and free cash flow is he willing to risk? I think the answer is most of it.