Meta Facebook announced its financial results for the first quarter of 2024, showing that revenue increased 27% year over year to $28.65 billion, and net profit more than doubled to $12.37 billion. This is Meta's fastest growth rate since 2021.
However, despite impressive earnings results, Meta's stock price plummeted 15% in after-hours trading. The reason behind this is investors' concerns about Meta's future growth.
Meta said in its earnings report that second-quarter revenue is expected to reach $365 billion to $39 billion, up 18% year over year. This forecast falls short of analysts' average expectations, and is also lower than Meta's growth rate in the first quarter.
Additionally, Meta also announced that it will increase investment in new businesses such as artificial intelligence and virtual reality. This has raised concerns among investors, as these businesses are currently unprofitable and could drag down Meta's overall profit margins.
The sharp drop in Meta's stock price reflects investors' concerns about the company's future growth. Despite Meta's strong growth in the first quarter, investors are worried that the company will be able to maintain this growth momentum in the future.
Meta faces intense competition from emerging social media platforms such as TikTok. Additionally, Meta will need to invest heavily in new fields such as artificial intelligence and virtual reality to remain competitive. All of these factors have caused investors to worry about Meta's future prospects.
Right...

70% of the growth set for this year should meet the standards 💪💪💪

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Despite short term lackluster performance, Paycom Software could still be valuable to long term investors due to its robust 17% EPS growth over the last five years. The current sell-off might offer a great opportunity to consider the stock, given the strong growth potential suggested by fundamental data.