META
📈 Meta Platforms has shown a 50% growth in the past year, reaching a capitalization of $1.7 trillion.
💰 The company’s total revenue reached $16.5 billion, with a 22% year-over-year growth.
✅ Meta’s operating profit exploded by 48% year-over-year, achieving an operating margin of 42%.
🔴 Reality Labs continues to lose money, but the market is currently overlooking this.
@invertirdesdecasa:
“Meta Platforms, having already closed the market, opened today, Wednesday, February 5th, but was at a maximum of approximately 0.5, a growth of more than 50% in the year that just passed, when I believe that in 2023 it quadrupled, over that another 50% more, capitalizing at 1.7 trillion, this is in English or in trillions in Spanish, billions, millions of millions of dollars, but you will see that you have to compare it against all the mass of money that Meta generates. To make it more practical, in the video here you also have the quarterly results of the fourth quarter. Let’s go to the annual report, total revenues of 16.5 billion dollars, a growth of 2% year over year. The costs did not grow by 22, they grew by 8% nothing more, and there is a very interesting graph about this that I am going to share with you, what was it that meant revenues growing at 22, costs under control growing at 8, the operating profit exploded up 48 year over year, an operating profitability margin of 42, like 100% of sales in the investment course, we learn to compare this, to compare this profitability even with the equity that the company works and a lot of other things, but it is not necessary for me to tell you that these results are spectacular, so that it is not necessary for you to see all the competition so that you have an idea, yes, and a net profit growing almost 60% to 62.3 billion dollars, the earnings per share grew a little more because Meta Platforms buys back shares, pays a lot in shares to its directors, but also buys back shares and that benefits the investor. In this graph that is in English, don’t be scared, let’s go to the important things, the number of people who open an application of this company per day is 3.35 billion people per day on average, look at that power of reaching, what advertising company are you going to hire, one that reaches few or many people, yes, a growth of 5%, of course, at some point this will stop growing because there are not so many people in the world. What is important to tell you around here is this, the capital expenditures went up quite a bit, yes, it is not seen here, but they were almost 40 billions, 40,000 million, a strong growth of this we are going to talk about also, yes, with a around here we are here 77.8 billion, 77,800 million dollars in cash with 18,000 in debt, that is to say a net cash of 50,000 million dollars has and also generates a lot of money around here you will see it somewhere to the free cash flows 52,000 million the previous year even with these high capital expenditures excellent wherever you look at it to remark and as a teaching for the future if you remember the year 2022 that the market severely punished this company because Mark Zuckerberg was spending a lot on the metaverse was losing a lot of money and well clearly today it no longer happens because the action no longer has the curse of Wall Street today it is at a maximum all that passed into oblivion nothing of that happens no sir no miss I regret to inform you that reality labs this this this item of the metaverse is still there and continues to lose more money than the previous year thing that I clarify I do not like of course if reality labs pays big in the future these losses will be worth it that is what Amazon did in its beginnings it lost a lot of money until it started to be profitable but this teaches you something yes that is the number of the losses to this day of this of this sector imagine what the numbers of meta would be if it did not lose this money but well today the market does not care the market does not talk about that but it is still there the moral the market does not always have the reason it values the companies quite well yes but every so often it exaggerates and your objective is to realize that in the numbers valuing conservatively to the future projecting to the future all that could be seen in the year 2022 and 23 many students of IDC have done it many have benefited and I hope they continue to do so because for me the growth of this company has not ended and now I explain why before moving on to the valuation this that I promised you look how well the company managed its expenses look how you can see it in the size of the graphs the expenses fell as a percentage of sales yes an excellent management an excellent optimization of the resources that the company has with a strong of course technological focus very good going to its valuation today it capitalizes this number that we were talking about that is quite large are 12 zeros after this or I think 11 c if I am not mistaken after this is 1.7 million of millions and at the close of the year 2024 as you just saw it generated 70,000 million in profits before taxes if you saw the bonds they show you the profitability with what the bond gives you before tax so let’s use that too 70,000 million before taxes comparing of course the bonds with meta 62,000 million of net profits and 52,100 of free cash flow why a little less because it is spending a lot on capex in capital expenditures and the free cash flow takes into account these expenses of future expansion in capex of course it quotes at 24 times if one divides this very large number with many zeros by these values it quotes 24 times its profits before taxes today the letter of the 10-year bond of the American treasury is more or less at 22 and rising a little that is to say meta platforms is around there despite the fact that the profits of meta can grow the profits of the bond do not 27 times its net profits the famous rati per and 32 times its free cash flow because as I say they are suffering a little or they are with many high capex expenses and next year alphabet Inc the parent company of Google also presented today leave me in your comments if you want us to analyze the report they are spending a lot on capex and that punishes a little what are the flows in the short term this that you are seeing here what does it tell you well I share my conclusions I ask you for a second to teleport 20 years ago and imagine yourself an investor of Apple for example already existed for more than 30 years as a listed company and for more than 35 as a company surely of having given for that moment 20 years ago a tremendous growth for its investors what should an investment have done at that moment say uy this has already gone up a lot better careful it is at a maximum look at the last 5 years the graph better we sell it would have been something totally absurd of course today with the newspaper of Monday we know it but it is investor at that moment what he must ask himself is this that I have in front of this company what do I continue doing to the future what is it producing today and what can it reasonably generate tomorrow of course speaking of money a company is worth more or worth less by virtue of the money that it can offer you tomorrow I hope the example has been clear and of course these are valuation exercises what I am doing conceptually we could do it practically with an Excel but from my point of view the social networks digital advertising of course WhatsApp what are the metaverse tomorrow the rivan lenses what is augmented reality we do not know where all this can go and eventually the already known items of networks of advertising of WhatsApp of interconnectivity and so many things working meta a lot of way to grow and monetize at least that is my point of view therefore a conclusion of saying ah this as it is at a maximum yes or yes is expensive not necessarily is correct everything depends on the money that something generates with all that my conclusion is that the market value reflects a fairly good future or that quite possible for what this company has shown that it is capable of doing it will be a straight line can not fall 50% of course any company can fall 50% tomorrow if things get ugly if the i3 rates go up if there is a regulatory issue that changes if imagine the history also of Microsoft the number of times that has fallen a lot in the stock market Amazon not to mention but everything is future money flow what matters then then in that intelligence for me the market value is quite fair for this company it was not two three years ago because it was very very undervalued and well you have to go monitoring what meta does what the competition does and go looking towards tomorrow that are at maximum that has risen 20 30 the last month does not say anything surely it will go up or down that will happen but it does not necessarily say anything that is my point of view I would like to Dear in the next videos alphabet as I told you a report of earnings came out that the market has criticized a lot I do not think it is so much which one would you like us to analyze leave it please in your comments and I remind you again investment course club of IDC believe me that the value that you can obtain is much greater than the price that you are going to pay and believe me that it will be money well invested in your financial education in your preparation that can pay off a lot in time nothing more a great affection a great greeting to all that continue well invest also well a last message administration of IDC the person in charge works from 9 to 18 hours if by Argentine time if by any chance you are in another country and you want to register also you can register sending an email are all the links I’m going to leave here below so you can proceed to your registration so you know how to do it for some time outside that schedule or you register you send the proof of payment well do not worry that the next day at 9 in the morning Argentine time they will respond and your quota will be of course guaranteed I wait for you there a great hug for all that continue also and we will see you soon in the next”
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