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
|Historical stock prices|
|Current Share Price||US$191.63|
|52 Week High||US$384.33|
|52 Week Low||US$169.00|
|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
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.
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.
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.
Meta Platforms Is A Loser In The New Ad-Tech Landscape
|FB||US Interactive Media and Services||US Market|
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.
|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
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
|FB fundamental statistics|
Is FB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FB income statement (TTM)|
|Cost of Revenue||US$23.52b|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||13.80|
|Net Profit Margin||31.20%|
How did FB perform over the long term?See historical performance and comparison
Is Meta Platforms undervalued compared to its fair value and its price relative to the market?
Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
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).
How is Meta Platforms forecast to perform in the next 1 to 3 years based on estimates from 49 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%)
How has Meta Platforms performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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.
How is Meta Platforms's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
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 ($19.9B).
Debt to Equity History and Analysis
Debt Level: FB is debt free.
Reducing Debt: FB had no debt 5 years ago.
Debt Coverage: FB has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: FB has no debt, therefore coverage of interest payments is not a concern.
What is Meta Platforms's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FB's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FB's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as FB has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Zuckerberg (37 yo)
Mr. Mark Elliot Zuckerberg founded Meta Platforms, Inc. (formerly known as Facebook, Inc.) in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is respons...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($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.
Experienced Management: FB's management team is seasoned and experienced (5.3 years average tenure).
Experienced Board: FB's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Meta Platforms, Inc.'s employee growth, exchange listings and data sources
- 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
- Meta Platforms, Inc.
- 1601 Willow Road
- Menlo Park
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/26 00:00|
|End of Day Share Price||2022/05/26 00:00|
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.