Meta stock: Will Israel War Spoil Meta’s Zuckerberg’s ‘Year Of Efficiency’?

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    It’s been a good year, to say the least. meta platform (Meta) and Metastock.


    Meta is one of the so-called “Magnificent Seven” companies that led the Nasdaq’s rally earlier this year. The social media giant’s stock has risen 166% this year. and, big cap 20 According to IBD MarketSmith, the company is approaching a buy point of 326.20 with post-earnings consolidation.

    It was also good for Meta in terms of profits. Facebook’s parent company has pivoted, posting accelerated growth in sales and profits in the last two quarters, thanks in part to aggressive cost-cutting measures that began in November 2022. Meanwhile, advertising revenue remains stable.

    All of this has led Meta CEO Mark Zuckerberg to name 2023 the company’s “Year of Efficiency.”

    Breakdown of revenue

    Here’s the overall breakdown for Meta’s last reporting period: The company announced on October 25 that third-quarter sales rose 23% to $34.1 billion, and earnings per share were $4.39, an increase of 168% year-on-year. The company beat analysts’ targets for sales of $33.6 billion and earnings of $3.64 per share.

    Advertising revenue rose to $33.6 billion year-over-year, matching Meta stock analysts’ forecast for a 21% increase. Ad revenue from Facebook, Instagram, and Threads and Reels accounts for 98% of Meta’s revenue.

    However, Metaverse adventures through Reality Labs remain a wild card. Over time, Mehta’s ventures in augmented reality, virtual reality, and artificial intelligence could transform industries ranging from e-commerce and gaming to healthcare and education.

    The company continues to work on its Metaverse businesses, including AI Studio, the Quest 3 virtual reality headset, and smart glasses. Revenue at the company’s Metaverse division, Reality Labs, fell to $210 million from $285 million in the year-ago period, and operating loss increased slightly to $3.74 billion from $3.67 billion. The company expects Reality Labs’ losses to increase year over year in fiscal 2023.

    Additionally, the company expects fourth-quarter revenue to be $38.25 billion at the midpoint, implying 18% growth. However, this is lower than the current analyst estimate of $38.8 billion.

    Meta’s advertising revenue outlook: Is the Middle East a factor?

    Therein lies a potential pitfall. The company noted uncertainty in its advertising business this quarter. As a result, Meta stock briefly fell below its 50-day moving average after earnings.

    Although Meta is not directly involved in the Middle East, the expected drop in advertising revenue coincided with the start of the Israel-Hamas war. Chief Financial Officer Susan Lee said that while the “low demand is not directly attributable to any particular geopolitical event,” the company is “correlated with the onset of the conflict.” “Advertising growth slowed at the beginning of the quarter.”

    Meta stock quickly regained its 50-day line after receiving strong buying support in recent trading.

    The company revised its full-year capital investment forecast to $28 billion at the midpoint, slightly lower than the previous forecast of $28.5 billion.

    Capital spending is scheduled to increase to $32.5 billion at the midpoint in 2024.

    Metastock leads Internet content group

    Meta stock has an overall rating of 99, which is the highest rating. Its EPS Rating of 95 and Relative Strength Rating of 98 also indicate market leadership.of Social media giants take the lead Internet content group with other giants, including Google’s parent company alphabet (Google), and common names Yelp (shout) and pinterest (pin).

    Meta is also ranked #1 in recent rankings PWC research Among the most active players in the Metaverse, first microsoft (MSFT), snap (snap) and roblox (RBLX).

    Mutual funds own 47% of the outstanding shares, and even more funds have been net buyers in the past three quarters. JPMorgan Large Cap Growth Fund (SEEGX) and Fidelity Contrafund (FCNTX) own Meta stock.

    Exchange-traded funds also own shares in Meta. SPDR Communication Service Selection Sector (XLC) and Fidelity MSCI Communication Services Index ETF (FCOM) has Meta stocks as its top holdings.

    Please follow Vramakrishnan For more news on the stock market today, visit X/Twitter.

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