Meta Platforms (NasdaqGS:FB) - Share price, News & Analysis

FB fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

FB Stock Overview

Rewards

Trading at 65.7% below our estimate of its fair value

Earnings are forecast to grow 13.76% per year

Earnings grew by 10.7% over the past year

Risk Analysis

Significant insider selling over the past 3 months

Meta Platforms Competitors

Alphabet

NasdaqGS:GOOGL

US$1.4t

Yandex

NasdaqGS:YNDX

US$577.2b

Baidu

NasdaqGS:BIDU

US$47.1b

Twitter

NYSE:TWTR

US$30.2b

Price History & Performance

Summary of all time highs, changes and price drops for Meta Platforms
Historical stock prices
Current Share Price	US$191.63
52 Week High	US$384.33
52 Week Low	US$169.00
Beta	1.37
1 Month Change	5.90%
3 Month Change	-8.96%
1 Year Change	-42.41%
3 Year Change	4.71%
5 Year Change	26.46%
Change since IPO	401.23%

Recent News & Updates

May 24

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

	FB	US Interactive Media and Services	US Market
7D	0.2%	-4.4%	1.0%
1Y	-42.4%	-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 Movement	8.9%
Interactive Media and Services Industry Average Movement	12.0%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

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

Founded	Employees	CEO	Website
2004	77,805	Mark Zuckerberg	https://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 Cap	US$518.61b
Earnings (TTM)	US$37.34b
Revenue (TTM)	US$119.67b

13.9x

P/E Ratio

4.3x

P/S Ratio

Is FB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FB income statement (TTM)
Revenue	US$119.67b
Cost of Revenue	US$23.52b
Gross Profit	US$96.14b
Other Expenses	US$58.81b
Earnings	US$37.34b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	13.80
Gross Margin	80.34%
Net Profit Margin	31.20%
Debt/Equity Ratio	0%

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 ($191.63) is trading below our estimate of fair value ($557.89)

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 (13.9x) 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 (13.9x) 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 (4.2x) 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 49 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/26 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31