Meta jumped 20%, still good time to buy now?
Meta $Meta Platforms(META.US$ shares jumped after trading hour after the company reported fourth-quarter revenue that topped estimates and announced a $40 billion stock buyback.
With the share up close to 20%, is it still a good time to invest in Meta?
Although the earnings result topped expectations, the revenue of Meta still decreased 4% YOY to $32.17 billion, while expenses increased 22% YOY. As the result, net income shrunk 55% YOY to $4.65 billion.
With the competition and potential recession headwind ahead, Meta will continue to face challenges to grow its revenue.
But it also can’t afford to cut down expenses in order to innovate to make the platform and services better.
With the current stock price of $180, the PE ratio of the company is now back to 20. It’s not presenting a lot of margin of safety to investors for now.
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