FB's top line of $33,671 million registered in the fourth quarter of last year actually beat market expectations by +0.7%, so Meta Platforms' recent quarterly earnings came in below the market consensus' forecasts because of higher-than-expected expenses. Meta Platforms' Q4 2021 diluted earnings per share of $3.67 as disclosed in its financial results media release came in -4% below the Wall Street analysts' consensus bottom line forecast of $3.82 per share. Meta Platforms last traded at $219.57 as of March 24, 2022, which suggests that its share price has dropped by -32% as compared to its pre-results announcement stock price of $323.00. FB Stock Key MetricsįB reported its Q4 2021 earnings on February 2, 2022, after trading hours, and the company's shares fell by -26% to close at $237.76 on the next day, February 3, 2022. But for investors willing to look beyond the company's expected weak financial performance in 2022, the current risk-reward for Meta Platforms is favorable as evidenced by its appealing valuations which justifies a Buy rating. Meta Platforms' 2022 forecasts aren't great, as FB is expected to see slower revenue growth and a decline in the bottom line this year. With the company's share price having corrected by more than a third since my earlier article, I assess FB's 2022 outlook in this latest article. My Buy investment rating for Meta Platforms, Inc.'s ( FB) remains unchanged as per my previous update published on Januwhich focused on the stock's valuations and share price outlook. That said, as the trend heats up again, we may see more investors start to think about such metaverse efforts in a more positive light - not as a cash sink but as a growth initiative that could help power some serious appreciation.Leon Neal/Getty Images News Elevator Pitch Meta may have been punished in the past for blowing billions on metaverse efforts. Further, it's not hard to imagine that many investors have stuck with Meta for its strong social-media business and its ability to monetize AI rather than its metaverse potential. In any case, the VR (virtual reality) and AR (augmented reality) markets look large enough that more than one winner will be minted from its rise over the next decade. Fintech innovators are feeling increasing pressure from the iPhone maker as it doubles down on its wallet ambitions. Of course, it's tough to compete against a proven tech behemoth like Apple. If it does, we might all hear about the Metaverse ad nauseam again, and that bodes well for the firms with skin in the game, most notably Meta Platforms. Many people that expect Apple ( NASDAQ:AAPL) will unveil its mixed-reality headset at some point during its WWDC 2023 conference, which kicks off on June 5. Looking ahead, the Metaverse may be due for a bit of a comeback. Many investors may have dismissed the Metaverse in favor of AI as the trend to bet on over the past six months. June Could be a Big Month for the Metaverse Meta isn't just a social media or metaverse company anymore it's a serious AI contender. Regardless, I still think many may be discounting the potential for AI to re-accelerate growth over the longer term. The monetization possibilities seem tough to fathom at this juncture. Undoubtedly, Meta's AI roadmap is impressive. Meta seeks to launch a new AI chip called the MTIA (Meta Training and Inference Accelerator) in 2025. Indeed, many big software companies have been hopping on the hardware bandwagon lately. Meta is also getting into the hardware game, with recent news of the firm's plans to develop custom chips tailored for AI. Indeed, Apple's privacy-focused iOS updates, which initially cost Meta dearly, may be to thank for pushing Meta to innovate its way out of a mess. Regardless, it's hard not to be impressed by Meta's ability to innovate through trying times. Only time will tell how Advantage+ and other AI offerings help jolt Meta's growth. The suite leverages AI to create multiple ad variations to help advertisers find the one that best sticks with any user. The company's Advantage+ suite of automation tools could change the landscape of the advertising world once again. With the power of AI, Meta may be able to increase the value of its ads without having to track users across the internet.
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