META
📉 Despite a 60-70% stock drop due to Apple’s ATT policy and heavy metaverse spending concerns, Meta’s core advertising business, encompassing Facebook, Instagram, and WhatsApp, remained fundamentally strong and highly popular.
🛠️ Mark Zuckerberg’s declared “year of efficiency” in 2023 successfully refocused the company on cost reduction and improving margins, leading to an immediate 10-percentage-point rise in operating margin.
📈 Strategic share buybacks, amounting to approximately 9% of its own shares during the downturn, coupled with improved financial performance, caused Meta’s stock to soar in 2023, effectively doubling from its lows.
@adriarivero:
“For example, Meta Facebook. One of Rob’s largest positions was Meta. In 2022, the stock was severely punished. Apple’s ATT (App Tracking Transparency) initiative and Mark Zuckerberg investing billions in the metaverse led Meta to fall between 60 and 70% from its highs. Mainly, he did it with Meta and Carvana. In Meta, Facebook, Instagram, and WhatsApp continued to be enormously popular platforms. The company continued to generate a lot of cash flow. Rob probably saw that the core advertising business was not broken; it was simply going through a rough patch, a bad moment. In 2023, Mark Zuckerberg announced the ‘year of efficiency,’ focusing Meta on reducing costs and improving margins. The results were immediate. The operating margin rose 10 percentage points. The company repurchased approximately 9% of its own shares during the fall. And all this caused Meta’s shares to skyrocket in 2023, doubling from their lows.”
Watch the exact part of the video where Adri Rivero talks about Meta Platforms here:
Watch the video on YouTube
Read more articles by the world’s top 100 analysts on Meta Platforms (META) at the following link. META stock.
