Meta shared its quarterly earnings earlier this week, with the results beating the expectations of analysts. The company saw its earnings per share coming at $4.71 versus $4.32 per share expected, while the revenue of $36.46 billion also beat estimations of $36.16 billion.

However, the company issued a weak forecast for the next quarter, predicting sales to come in the range of $36.5 billion to $39 billion, while the analysts expected $38.3 billion. Additionally, the company now expects to have a capital expenditure of between $35 billion and $40 billion compared to previous expectations of $30 billion to $37 billion due to focus on AI.

“We expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts,” Meta shared in a statement.

Meta’s shares closed at $493.50 on Wednesday but plunged all the way down to $421.18 in after-hours trading and wiped out close to $200 billion of market value. Before the plunge, the company’s stock was 42.51% up year to date.

The post Meta Stock Slides 14% After Announcement of Plans for “Aggressive” AI Expenditures appeared first on theprimarymarket.com.

As a result of Meta’s strong performance in Q1, the company’s stock soared in after-hours trading. The shares jumped almost 12% compared to Wednesday’s close price of $209.40.

Meta’s revenue grew by 3% compared to the same period last year and came to $28.65 billion. The analysts polled by Bloomberg expected a decline and revenue of $27.67 billion. The $2.20 in earnings per share topped the estimated EPS of $2.01, while advertising revenue of $28.1 billion was also well above the expected $26.76 billion.

“We had a good quarter, and our community continues to grow,” Meta’s CEO Mark Zuckerberg said in a statement. “We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision.”

Among other numbers, Meta raised its forecast for the second quarter of 2023 to $29.5 billion-$32 billion, compared to an estimated $29.48 billion. The company also reported a $1 billion loss from the restructuring process it underwent earlier this year and expects an additional $500 million in costs from the job cuts.

The post Meta Stock Soars After Impressive Q1 Earnings Results appeared first on theprimarymarket.com.

Meta stock saw a gradual growth last week and closed at $170.88 per share on Friday. However, Martin’s note quickly erased all that, and the stock closed at $162.88 on Monday. 

Martin recommended the clients to steer away from the Meta stock and treat it as a “source of funds.” Her reasoning is that the company is seeing slower growth at the same time it started a huge project of building its “Metaverse.” She is also predicting that Meta’s costs will “far exceed” any revenue growth in the future.

“We recommend investors remain on the sidelines while they assess several structural valuation risks, including consumer behavior shifts, competition, moat degradation, regulatory risks, and Metaverse investment risks,” Martin added.

The focus on Metaverse has cost Meta a huge amount of money in recent years. It is estimated that the company’s Reality Labs division, which focuses on virtual reality experiences, has seen close to $3 billion in losses in the first quarter of 2022 alone. The estimated revenue, on the other hand, was $695 million.

The post Meta Stock Plunges Following Needham Downgrade appeared first on theprimarymarket.com.

Meta shared its quarterly earnings earlier this week, with the results beating the expectations of analysts. The company saw its earnings per share coming at $4.71 versus $4.32 per share expected, while the revenue of $36.46 billion also beat estimations of $36.16 billion.

However, the company issued a weak forecast for the next quarter, predicting sales to come in the range of $36.5 billion to $39 billion, while the analysts expected $38.3 billion. Additionally, the company now expects to have a capital expenditure of between $35 billion and $40 billion compared to previous expectations of $30 billion to $37 billion due to focus on AI.

“We expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts,” Meta shared in a statement.

Meta’s shares closed at $493.50 on Wednesday but plunged all the way down to $421.18 in after-hours trading and wiped out close to $200 billion of market value. Before the plunge, the company’s stock was 42.51% up year to date.

The post Meta Stock Slides 14% After Announcement of Plans for “Aggressive” AI Expenditures appeared first on theprimarymarket.com.

As a result of Meta’s strong performance in Q1, the company’s stock soared in after-hours trading. The shares jumped almost 12% compared to Wednesday’s close price of $209.40.

Meta’s revenue grew by 3% compared to the same period last year and came to $28.65 billion. The analysts polled by Bloomberg expected a decline and revenue of $27.67 billion. The $2.20 in earnings per share topped the estimated EPS of $2.01, while advertising revenue of $28.1 billion was also well above the expected $26.76 billion.

“We had a good quarter, and our community continues to grow,” Meta’s CEO Mark Zuckerberg said in a statement. “We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision.”

Among other numbers, Meta raised its forecast for the second quarter of 2023 to $29.5 billion-$32 billion, compared to an estimated $29.48 billion. The company also reported a $1 billion loss from the restructuring process it underwent earlier this year and expects an additional $500 million in costs from the job cuts.

The post Meta Stock Soars After Impressive Q1 Earnings Results appeared first on theprimarymarket.com.

Meta stock saw a gradual growth last week and closed at $170.88 per share on Friday. However, Martin’s note quickly erased all that, and the stock closed at $162.88 on Monday. 

Martin recommended the clients to steer away from the Meta stock and treat it as a “source of funds.” Her reasoning is that the company is seeing slower growth at the same time it started a huge project of building its “Metaverse.” She is also predicting that Meta’s costs will “far exceed” any revenue growth in the future.

“We recommend investors remain on the sidelines while they assess several structural valuation risks, including consumer behavior shifts, competition, moat degradation, regulatory risks, and Metaverse investment risks,” Martin added.

The focus on Metaverse has cost Meta a huge amount of money in recent years. It is estimated that the company’s Reality Labs division, which focuses on virtual reality experiences, has seen close to $3 billion in losses in the first quarter of 2022 alone. The estimated revenue, on the other hand, was $695 million.

The post Meta Stock Plunges Following Needham Downgrade appeared first on theprimarymarket.com.