Meta Beats, Guides Ahead Of The Street, Raises Expense Outlook
The company formerly known as Facebook delivered quarterly results that beat estimates on Wednesday. Meta also guided ahead of the Street.
That was the good news. The (potential) bad news was a higher range for the company's full-year expense guidance, and hints at higher costs in 2024.
Mark Zuckerberg made cost-cutting a priority after a combination of slowing top-line growth and red ink in the division responsible for executing his metaverse vision, prompted a dramatic selloff in the shares
Just one investor’s opinion: GOOG and META reports good to very good, MSFT more on the okay side, stocks reacting appropriately. Both GOOG and META showing reacceleration in their core businesses, MSFT’s core businesses more holding steady-ish, all seeing FX headwind fade with tailwind ahead. If you plug in reasonably optimistic assumptions, it is not too hard to get valuation upside for GOOG and META, while I have to push optimism much harder to get the same for MSFT.
My brief assessment of the operating income losses shown in the graph above shows they add up to ~$35 bil. That’s all the revenue for one quarter out of the company’s cumulative assets. That’s a pretty nasty bit of bad management Zuc will never carry the can for. Lucky him his investors remain mesmerized.