Meta stock

Social media company Meta Platforms faces slowing sales growth. Click here to read why I am buying META stock hand over fist.

Despite a sales slowdown, the social media company is expected to remain profitable. Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. With TikTok gaining traction, Meta may need to either double down on its investments/scale of the Facebook Reels or find a way to improve monetization. I have no business relationship with any company whose stock is mentioned in this article. Meta earned $4.40 billion in net income in the third quarter and remains the world's largest social media company, with nearly 3 billion daily active users. According to the Relative Strength Index, the stock is now significantly oversold, which could be interpreted as a contrarian buy signal. The panic has reduced Meta's earnings multiple to 9.5x, down from 24x at the start of 2022. Meta lost roughly a quarter of its market value after earnings, which I believe is not only exaggerated, but unwarranted. Meta fell 25 cents short of the average earnings forecast of $1.89 per share, resulting in a major stock meltdown following earnings. The social media company saw a 25% valuation cut after earnings, and while the fourth-quarter sales growth forecast is soft, I believe investors are making a big mistake by ignoring META at such a compelling valuation. Because investors are hypersensitive to uncertainty and slowing sales growth, I can understand how the market reacted after earnings were reported. [Third quarter earnings](https://seekingalpha.com/news/3895857-meta-platforms-gaap-eps-of-1_64-misses-0_22-revenue-of-27_71b-beats-310m) of Meta Platforms, Inc.

Social media developer Meta Platforms (NASDAQ: META) stock took a (-24%) cliff dive after its Q3 2022 earnings miss. While the earnings miss.

Meta has teamed up with [Microsoft (NYSE: MSFT)](https://www.marketbeat.com/stocks/NASDAQ/MSFT/) to bring their productivity suites, [Adobe (NYSE: ADBE)](https://www.marketbeat.com/stocks/NASDAQ/ADBE/) and [Autodesk (NASDAQ: ADSK)](https://www.marketbeat.com/stocks/NASDAQ/ADSK/) for creativity tools, [Zoom (NYSE: ZM)](https://www.marketbeat.com/stocks/NASDAQ/ZM/) for communications and [Accenture (NYSE: ACN)](https://www.marketbeat.com/stocks/NASDAQ/ZM/) for enterprise solutions. Meta has clearly warned investors of more pain in the near term to gain in the long term and the market is repricing its shares as result. [Ad spending](https://www.marketbeat.com/originals/snap-stock-falls-as-user-growth-slows-to-single-digits/) has been falling as evidenced by the results for [Snap (NASDAQ: SNAP)](https://www.marketbeat.com/stocks/NYSE/SNAP/) and [Alphabet (NASDAQ: GOOGL)](https://www.marketbeat.com/stocks/NASDAQ/GOOGL/), which saw its YouTube ad sales fall (-2%) in the last quarter. dollar](https://www.marketbeat.com/originals/here-are-3-stocks-that-benefit-from-a-strong-us-dollar/) make a $1.79 billion impact on revenues and is expected to make a (-7%) impact in the next quarter. [video gaming](https://www.marketbeat.com/originals/unity-software-is-the-other-video-game-engine-to-watch/) has been slow. The collapse in Meta’s shares has dropped its price/earnings to under 13X. Virtual reality is not accessible to the mainstream at present as it requires a powerful computer and expensive special headgear. In fact, Zuckerberg cautioned that the losses in its Reality Labs segment which is dedicated to the [Metaverse](https://www.marketbeat.com/originals/can-roblox-reverse-its-falling-bookings-amid-rising-engagements/) would continue to grow “significantly” in 2023. Meta shares are providing a [bargain opportunity](https://www.marketbeat.com/originals/upwork-shares-stumble-into-bargain-territory/) for investors that have been waiting for a pullback. The technical damage to the stock will take time to heal as the market re-prices its valuation for META stock. However, the strong engagements underscore that Meta is not becoming the Myspace of [social media](https://www.marketbeat.com/originals/can-pinterest-rally-on-support-from-big-investor-with-conviction/) any time soon. [Meta Platforms (NASDAQ: META)](https://www.marketbeat.com/stocks/NASDAQ/META/) stock took a (-24%) cliff dive after its Q3 2022 earnings miss.

For months before its devastating quarterly report, Meta Platforms (META) held the $160 price level. This month, META stock traded at $140 before plunging ...

Furthermore, spending in 2022 is in the The firm spent $2 billion on its office property. reality is not the reality shareholders want.

Meta Platforms Inc (NASDAQ: META) shares are trading lower by 6.43% to $92.82 and near session lows Monday afternoon on continued weakness following the ...

[Read More](https://www.benzinga.com/news/22/10/29482433/instagram-faces-partial-outage-users-complain-of-disappearing-accounts-globally) [Instagram platform](https://www.benzinga.com/news/22/10/29482433/instagram-faces-partial-outage-users-complain-of-disappearing-accounts-globally) is facing a partial outage on Monday in some parts of the world, Downdetector reported Monday. [why it's moving](https://www.benzinga.com/taxonomy/term/768599) [Movers](https://www.benzinga.com/taxonomy/term/24) [Trading Ideas](https://www.benzinga.com/taxonomy/term/22) Meta Platforms last week reported third-quarter revenue of $27.71 billion, a 4% decline year-over-year. [Read More](https://www.benzinga.com/news/earnings/22/10/29425603/meta-platforms-run-from-q3-earnings-revenue-beat-eps-miss-daily-users-up-costs-set-to-climb-in-2023) [Here’s what analysts](http://www.benzinga.com/analyst-ratings/analyst-color/22/10/29441523/2023-an-investment-year-for-meta-platforms-why-these-6-analysts-are-lowing-price-ta) are saying about the company’s growth and high spending on the metaverse sector. The weakness is also possibly amid recent Instagram account issues and platform outages.

Mark Zuckerberg built Meta Platforms Inc. into one of the biggest companies in the world, but some investors now see him as an obstacle to the stock ...

The biggest weight on the stock: Meta is spending billions of dollars to develop the metaverse, an immersive virtual world that the chief executive officer has [long believed](https://www.bloomberg.com/news/articles/2014-03-26/facebook-makes-2-billion-virtual-reality-bet-with-oculus) represents the future of computing. [earnings](https://www.bloomberg.com/news/articles/2022-10-26/meta-s-zuckerberg-asks-for-patience-as-costs-spook-investors) pushing the shares to a multi-year low. [Meta Platforms Inc.](/quote/META:US) into one of the biggest companies in the world, but some investors now see him as an obstacle to the stock recovering from a [historic selloff](https://www.bloomberg.com/news/articles/2022-10-27/meta-s-spiralling-rout-puts-it-on-brink-of-losing-top-20-status).

Major Meta shareholders are furious that CEO Mark Zuckerberg has continued pouring billions into his struggling metaverse initiative despite their concerns, ...

I don’t think you’re going to know if it is the right move for five or 10 years,” Older told the outlet. Aside from serving as Meta’s CEO, Zuckerberg controls more than 54% of the company’s voting-class shares. One source familiar with the talks said there was a palpable “sense of frustration” over Meta’s rampant spending. Meta routinely meets with top shareholders following the company’s earnings reports. “The timeline for the metaverse is very stretched. A Meta spokesperson told the FT that the company values “the opinions of our investors and regularly engage with them to ensure we’re aware of their respective perspectives.”

Due to less than stellar quarterly reports, Meta's stock price took a tumble again - and this time it was very dramatic.

[quarterly report](https://investor.fb.com/investor-news/press-release-details/2022/Meta-Reports-Third-Quarter-2022-Results/default.aspx) showed growth on most of the company’s assets, including Facebook users and active members, but a 4% decline in revenue and more than 50% decline in profit thanks to rising metaverse costs. After Meta’s stock fell by 24% at its lowest level since 2016, CNBC host Jim Cramer burst into tears live during an episode of Squawk on the Street. I was wrong.

Shares of Meta Platforms Inc. shed 6.09% to $93.16 Monday, on what proved to be an all-around grim trading session for the stock market, with the NASDAQ...

Cl A [GOOGL,](/investing/stock/GOOGL?mod=MW_story_quote)fell 1.85% to $94.51. [MSFT, -1.59%](/investing/stock/MSFT?mod=MW_story_quote)fell 1.59% to $232.13 and Alphabet Inc. [Automated Insights](https://automatedinsights.com), an automation technology provider, using data from Dow Jones and FactSet. [META, -6.09%](/investing/stock/META?mod=MW_story_quote)shed 6.09% to $93.16 Monday, on what proved to be an all-around grim trading session for the stock market, with the NASDAQ Composite Index [COMP,](/investing/index/COMP?mod=MW_story_quote)falling 1.03% to 10,988.15 and Dow Jones Industrial Average -1.03% [DJIA,](/investing/index/DJIA?mod=MW_story_quote)falling 0.39% to 32,732.95. Trading volume (120.5 M) eclipsed its 50-day average volume of 36.7 M. closed $260.67 below its 52-week high ($353.83), which the company reached on November 22nd.

Mark Zuckerberg said 2 months ago being Meta CEO was like "being punched in the stomach" every day. He's lost $25 billion since.

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Meta Platforms (META) recently posted quarterly data indicating a downturn in income and a ramp-up in expenditures. The company modeled an elevated expense ...

On the date of publication, Louis Navellier had a long position in META. Granted, some investors may still be on board with Zuckerberg’s gigantic bet on the build-out of the metaverse. Wall Street only expected Meta Platforms to model 7% YOY expense growth for FY2023, so the announcement alarmed investors. Then, investors recently learned that Meta Platforms anticipates 13% year-over-year (YOY) expense growth for FY2023. Sure, but not every financial trader is willing to go all-in on the metaverse with Zuckerberg. It also didn’t help that Meta Platforms indicated higher spending as well as lower revenue and income during 2022’s third quarter.

Frustration is a reasonable response to Meta Platforms' (META -6.09%) aggressive spending on its metaverse ambitions. After all, at the very least, ...

Free cash flow is cash profit the company can spend on [dividends](https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/how-dividends-work/) or [share repurchases](https://www.fool.com/investing/how-to-invest/stocks/share-repurchase/), or stack on its balance sheet. Meta's stock has become so cheap that the business would have to get a lot worse than it is now for its valuation even to approach where it's historically traded. Free cash flow would be even higher if not for Reality Labs, but the point is that Wall Street has way oversold the stock relative to the actual financial state of Meta's business. To be fair, there is a lot of baggage right now. There is no denying Meta's losses on Reality Labs, which were $3.7 billion just in the third quarter of this year. Wall Street disapproves of Meta's actions, and has slaughtered the stock price over the past 12 months.

Meta Platforms (NASDAQ:META) stock is under pressure and has lost over 72% of its value year-to-date. Heightened competition, the slowdown in user growth, ...

The improving engagement trends across its platform are positive and will support the recovery of META stock. Also, adverse currency movements and cost headwinds could continue to pressure META stock in the short term. [NASDAQ:META](/stocks/meta/forecast)) stock is under pressure and has lost over 72% of its value year-to-date. On its valuation, Sebastian said, Meta “deserves a valuation premium to peer averages due to superior growth prospects, platform scale, and technology orientation.” [Colin Sebastian](/experts/analysts/colin-sebastian) recommends buying the dip in META stock. On TipRanks, Meta Platforms stock has received 23 Buy, 10 Hold, and three Sell recommendations for a Moderate Buy consensus rating.

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get ...

I will explain the good, the bad, and the opportunity. The video was published on October 30, 2022. [META](/quote/nasdaq/meta/) 1.29%) position despite the recent 20% dip.

Rep. Michael McCaul (R-TX) disclosed a sell-off worth thousands of dollars in Meta stock before shares of the tech giant plummeted in value, filings show.

"And until our elected officials get serious about cracking down on real or perceived conflicts of interest, the crisis of confidence will only get worse." Reality Labs, the group working to expand metaverse technology for Zuckerberg's company, cost Meta $3.7 billion in the last quarter, and losses are expected to surge next year, [said](https://www.wsj.com/articles/facebook-parent-meta-shares-fall-to-new-multiyear-lows-11666882875) Meta Chief Financial Officer David Wehner in October. McCaul reported only three weeks before his family's Meta sell-off that his spouse and child in August offloaded between $300,000 and $750,000 combined in Meta stock. The company has invested heavily in augmented reality and virtual reality. "You can understand why an average retail investor who took a financial hit on their own Meta stocks might be suspicious that their member of Congress just so happened to be able to avoid similar losses." "Rather, his wife has assets she solely owns, and a third-party manager made the purchase without her direction."

Meta Platforms' stock (NASDAQ: META) has lost 28% in the last week, significantly underperforming the S&P 500 (up 1.9%). Further, the same trend was ...

Further, the same trend was observed over the last ten days (-30% vs -5.3%) and one month period (-31% vs 8.1%). - A change of -30% or more over ten trading days is a less than 1% likelihood event, which has occurred 4 times out of 2516 in the last ten years Now, is META stock set to drop further, or could we expect some recovery? See our analysis on It reported a 4% decline in net revenues to $27.7 billion, mainly due to a 4% drop in advertising revenues. The social media giant missed the consensus estimates in the third quarter of 2022, the second quarter in a row.

Shares of Meta Platforms (META 2.19%) finally reversed their ongoing slump Tuesday morning, climbing as much as 4.6%. By 2:22 p.m. ET the stock was still up ...

The Treasury Department is also said to be skeptical of a potential deal. Acting on that warning, Congress passed the Secure Equipment Act of 2021, which gave the FCC power to effectively ban the use of telecom gear manufactured by Chinese companies Huawei and ZTE, which were viewed as a potential threat to national security. [social media](https://www.fool.com/investing/stock-market/market-sectors/communication/social-media-stocks/) titan finally got some (potentially) good news, as government regulators consider banning one of company's strongest competitors. A commissioner with the Federal Communications Commission (FCC), Brendan Carr, said in an interview with Axios that the Committee on Foreign Investment in the U.S. The company is currently in talks with CFIUS, which is charged with governing foreign companies operating in the U.S. While the FCC itself has no regulatory authority over TikTok, as one of five commissioners at the FCC, Carr's opinion has a lot of sway in Washington, D.C.