Facebook (FB) Stock Has A $29B Problem

Today we take a look at #Facebook #FB Stock - otherwise known as Meta. This company reported earnings today and the stock is soaring in the after hours.

However after looking at the numbers - which missed expectations on the revenue side both in the quarter and upcoming quarter - the company is not out of the woods yet. Net income and operating profits dried up as well as more expenses tied to the metaverse ate into profits.

I'd expect in the coming days - revenue and earnings estimates for Q3 & Q4 to come in light of current expectations - meaning the multiple isn't nearly as juicy as it may seem.

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[ratheeshkumark]

Requesting to maintain a google sheet with Buy/Sell/Hold recommendations on the tickers you are covering.. it will be a good reference to look while trading

[stockmarket]

You are the only one who talks about earnings reports in depth and I appreciate you so much.

[MyDreamside]

do you use a spreadsheet to value stocks? how you go about it?

[adjas]

Too pessimistic, it’s growing millions of users per quarter and providing a critical service to them, connecting people.

[Warren_Ao]

FB is still a great long term investment. Bought the dip @ 172

[happyes]

This is an interesting analysis. I am a Korean retail investor and I just subscribed to this channel.

[UsxrUnknxwn]

I love your earning report analysis, please don’t stop these

[georgecharalambous]

I love all your analysis and thank you for your quick reactions to these earnings releases. It's possibly the only time that I will need to disagree with you on the $29b issue (agree on everything else on the analysis). 1st quarter has always been a soft quarter for FB (!) and many times their revenue was just the same as q3 of the previous year. Its in q2&q3 that their revenues tend to increase and q4 when they explode to the upside anf this pattern has been consistent in their history. Having said that Im confident that the $29b barrier will easily break in q2&q3 to be honest. Not sure why you see the $29b as a barrier as they also tend to increase their average revenue per user (ARPU).

[beny.]

I bought a small position in FB prior to earnings as it was already looking dirt cheap, and took advantage of the spike for a quick 15% gain in a day. Gonna reinvest it in AMZN!

[robdogsurf]

39 billion in Q4 that would be unbelievable

[anthonylenoframeoninstagra]

I'll always appreciate your great services and keep recommending you best among all✌️✌️✌️✌️.

[kennethtam]

Yes. It is too soon to say that the worst is over.

[uther]

I believe Alphabet will be rolling out similar changes for Android OS as well.

[mrgerbeck]

This matter is way overblown. ALL PLATFORMS face the same issue; it's a sector problem, not a Meta problem. Meta is making investments in being the best among its competition regardless of the environment.

[thatsmyjam]

Always bearish on Meta. Would be fun if you did an analysis on the XR growth that will be seen until 2030. The metaverse is a massive opportunity and for that Meta should trade at a much higher PE

[OurBengals]

FB is a solid company. Any issues are short term.

[anonsurf]

Tomorrow will be the start of a bounce in Nasdaq. Fingers crossed 🤞

[viloq]

Thanks for the analysis. Are you planning on doing one on BA?

[kyu-myongkim]

so exciting company with all metaverse stuff! It will figure out nicely not worried at all about revenue this q.

[loveforthes]

If someone had to jump into 3 good stocks right now for the next few years which ones would u recommend?