Connect with us

Hi, what are you looking for?


Analyst recommends ‘caution’ as Meta stock pops 20% on guidance

Shares of Meta Platforms Inc (NASDAQ: META) surged nearly 20% in extended hours after the tech behemoth issued upbeat sales guidance and increased its share repurchase authorisation by $40 billion.

Meta stock up on number of users

Also a positive was the number of users on Facebook that, for the first time, hit the $2.0 billion mark.

For Q1, Meta now forecasts its revenue to fall between $26 billion and $28.5 billion – better than $27.1 billion that analysts had anticipated. It also plans on staying on course with layoffs (find out more) and trimming other costs, including on data-center projects.

Consequently, the multinational lowered its guidance for operating expenses to $89 billion to $95 billion and capital expenditures to $30 billion to $33 billion. Reacting to it on Yahoo Finance, Jefferies’ Brent Thill said:

Last quarter, every was like, what on earth are you doing Mr Zuckerberg? Two weeks later, he pulled back the throttle which was at twelve to a nine and now he’s back to a seven on expenses. He’s clearly listening to Wall Street”

Is now a suitable time to buy Meta stock?

Including the after-hours gain, Meta stock is already up 45% year-to-date. Therefore, Thill recommends “caution” for those interested in taking a position here, especially since there still are challenges ahead.

I’d say margins are a concern. I’d be concerned about the magnitude of the [stock] move. Number two, the expense structure still, And number three, we’re not out of the woods on the economy. We’re not out of the woods with ad spend.

On the bright side, though, he’s bullish on “Reels” and is convinced that Meta Platforms is past the headwinds related to the Apple privacy changes.

Meta Platforms’ Q4 earnings snapshot

Earned $4.65 billion versus the year ago $10.3 billion

Per-share earnings also tanked from $3.67 to $1.76

Revenue slid 4.5% year-on-year to $32.17 billion

Consensus was $2.26 a share on $31.55 billion revenue

ARPU of $10.86 was also better the Street estimates

Reality Labs (metaverse unit) lost $4.28 billion in Q4

According to Meta Platforms, layoff and other restructuring costs lowered its per-share earnings this quarter by roughly $1.24, as per the press release. Late last year, though, it had warned that its operating loss attributed to “Reality Labs” will grow significantly in 2023.

The post Analyst recommends ‘caution’ as Meta stock pops 20% on guidance appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.