From Rock Bottom to Rocket Ship: Meta’s stock soared 178% in 2023, after plunging 64% in 2022. It’s the company’s best year ever, surpassing even its Facebook IPO boom!
Efficiency First: Mark Zuckerberg’s “Year of Efficiency” paid off! Hefty cost cuts, refocusing on ads, and AI investments fueled the comeback.
The Apple Bite: Apple’s privacy changes initially hurt, but Meta adapted with AI tech, leading to faster revenue growth than Google or Snap.
Chinese Connection: Chinese companies are spending big on Facebook and Instagram ads, boosting Meta’s growth.
Metaverse Gamble: While Zuckerberg remains bullish, Reality Labs still racks up billions in losses. Investors are watching closely.
Crumbling Cookies: Google’s cookie phase-out in 2024 could be another challenge for Meta’s ad business.
Streaming Shift: Advertisers are moving to smart TVs, a market Meta isn’t in.
TikTok Threat: The short-form video giant continues to attract younger audiences and be a thorn in Meta’s side.
⚖️ Legal Loopholes: TikTok’s ban remains on hold, but ongoing concerns about the Chinese app could benefit Meta.
Future Forecast: 2024 will be a test for Meta, with ongoing competition, policy changes, and new markets to navigate. Can the comeback last?
In the first quarter of 2023, Meta reported a total revenue of $28.645 billion, a 3% increase compared to the previous year
- Costs and expenses: $21.418 billion, a 10% increase compared to the previous year.
- Income from operations: $7.227 billion, a 15% decrease compared to the previous year.
- Operating margin: 25%, a 31% decrease compared to the previous year.
- Provision for income taxes: $1.598 billion, an 11% increase compared to the previous year.
- Effective tax rate: 22%, a 2% increase compared to the previous year.
- Net income: $5.709 billion, a 24% decrease compared to the previous year.
- Diluted earnings per share (EPS): $2.20, a 19% decrease compared to the previous year.
For the third quarter of 2023, Meta reported a total revenue of $34.15 billion, a 23% increase compared to the previous year.
- Net income: $11.58 billion, more than doubling compared to the previous year.
In the fourth quarter of 2023, revenue guidance is expected to be in the range of $36.5 billion to $40 billion.