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FB

Meta Platforms NasdaqGS:FB Stock Report

Last Price

US$195.13

Market Cap

US$518.6b

7D

0.8%

1Y

-40.6%

Updated

27 May, 2022

Data

Company Financials +
FB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends0/6

FB Stock Overview

Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide.

Meta Platforms Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Meta Platforms
Historical stock prices
Current Share PriceUS$195.13
52 Week HighUS$384.33
52 Week LowUS$169.00
Beta1.37
1 Month Change11.54%
3 Month Change-7.29%
1 Year Change-40.64%
3 Year Change9.95%
5 Year Change27.03%
Change since IPO410.39%

Recent News & Updates

May 24
From Growth to Profitability - Analyzing the Turn of Meta's (NASDAQ:FB) Story

From Growth to Profitability - Analyzing the Turn of Meta's (NASDAQ:FB) Story

Meta Platforms, Inc.'s (NASDAQ:FB) has been in the news lately, primarily centered around the partial hiring halt of the company, as uncertainties regarding the future growth and profitability mount. In this article, we will go through some key fundamentals of Meta, and see what the change in direction may mean for the company.

May 23

Meta Platforms: Pause That Refreshes

Meta Platforms has paused spending growth to refresh the earnings stream of the business. Metaverse excitement has dimmed, but the Apple mixed reality device should reinvigorate market growth. The stock is insanely cheap at 14x '23 EPS targets while Reality Labs spending continues to constrain short-term profits.

May 16

Meta Platforms: Firing Season Begins

Facebook reported close to a $3 billion dip in income from operations compared to the year-ago quarter. Around 60% of this decline was due to a fall in income in the Family of Apps segment and the remaining loss was due to Reality Labs. Most of the decline can be attributed to a mismatch in hiring which led to a headcount increase of 28% YoY compared to only 7% growth in revenue. Facebook’s management has announced that they will be taking their foot off the pedal in terms of expenses and forecasted a reduction of $3 billion in annual expense rate. It is highly likely that the management will be able to synchronize the headcount and revenue trajectory which should lead to a big jump in earnings in the near term and a better bullish sentiment towards the stock.

May 10

Meta Platforms Is A Loser In The New Ad-Tech Landscape

Meta Platforms has grown revenue and profits at exceptional rates over the last decade, delivering shareholder value to grateful investors. Nevertheless, the company faces numerous tailwinds that suggest investors should stay away. The core business is failing at the hands of competition and changes to Apple’s data privacy policy. Regulators have knocked out a key value driver: acquisitions. The metaverse is at least a decade away from realization.

Shareholder Returns

FBUS Interactive Media and ServicesUS Market
7D0.8%-4.4%1.0%
1Y-40.6%-46.3%-15.1%

Return vs Industry: FB exceeded the US Interactive Media and Services industry which returned -46.3% over the past year.

Return vs Market: FB underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is FB's price volatile compared to industry and market?
FB volatility
FB Average Weekly Movement8.9%
Interactive Media and Services Industry Average Movement12.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: FB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FB's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200477,805Mark Zuckerberghttps://investor.fb.com

Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment’s products include Facebook, which enables people to share, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices through chat, audio and video calls, and rooms; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.

Meta Platforms Fundamentals Summary

How do Meta Platforms's earnings and revenue compare to its market cap?
FB fundamental statistics
Market CapUS$518.61b
Earnings (TTM)US$37.34b
Revenue (TTM)US$119.67b

14.1x

P/E Ratio

4.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FB income statement (TTM)
RevenueUS$119.67b
Cost of RevenueUS$23.52b
Gross ProfitUS$96.14b
Other ExpensesUS$58.81b
EarningsUS$37.34b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)13.80
Gross Margin80.34%
Net Profit Margin31.20%
Debt/Equity Ratio0%

How did FB perform over the long term?

See historical performance and comparison

Valuation

Is Meta Platforms undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: FB ($195.13) is trading below our estimate of fair value ($558.06)

Significantly Below Fair Value: FB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FB is good value based on its Price-To-Earnings Ratio (14.1x) compared to the US Interactive Media and Services industry average (37.7x).

PE vs Market: FB is good value based on its Price-To-Earnings Ratio (14.1x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: FB is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: FB is overvalued based on its Price-To-Book Ratio (4.3x) compared to the US Interactive Media and Services industry average (1.7x).


Future Growth

How is Meta Platforms forecast to perform in the next 1 to 3 years based on estimates from 50 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FB's forecast earnings growth (13.8% per year) is above the savings rate (1.9%).

Earnings vs Market: FB's earnings (13.8% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: FB's earnings are forecast to grow, but not significantly.

Revenue vs Market: FB's revenue (12.8% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: FB's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FB's Return on Equity is forecast to be high in 3 years time (24.5%)


Past Performance

How has Meta Platforms performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FB has high quality earnings.

Growing Profit Margin: FB's current net profit margins (31.2%) are lower than last year (35.7%).


Past Earnings Growth Analysis

Earnings Trend: FB's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: FB's earnings growth over the past year (10.7%) is below its 5-year average (22.7% per year).

Earnings vs Industry: FB earnings growth over the past year (10.7%) exceeded the Interactive Media and Services industry -47.2%.


Return on Equity

High ROE: FB's Return on Equity (30.3%) is considered high.


Financial Health

How is Meta Platforms's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FB's short term assets ($59.3B) exceed its short term liabilities ($21.1B).

Long Term Liabilities: FB's short term assets ($59.3B) exceed its long term liabilities ($19.9B).


Debt to Equity History and Analysis

Debt Level: FB is debt free.

Reducing Debt: FB had no debt 5 years ago.

Debt Coverage: FB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Meta Platforms's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate FB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FB's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FB has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Mark Zuckerberg (37 yo)

17.83yrs

Tenure

US$26,823,061

Compensation

Mr. Mark Elliot Zuckerberg founded Meta Platforms, Inc. (formerly known as Facebook, Inc.) in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is respons...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD26.82M) is above average for companies of similar size in the US market ($USD13.20M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FB's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: FB's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Meta Platforms, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Meta Platforms, Inc.
  • Ticker: FB
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$518.613b
  • Shares outstanding: 2.71b
  • Website: https://investor.fb.com

Number of Employees


Location

  • Meta Platforms, Inc.
  • 1601 Willow Road
  • Menlo Park
  • California
  • 94025
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/27 00:00
End of Day Share Price2022/05/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.