Meta Platforms Stock FY2023 Q4 Third-party Analysts' Forecast & Preview

Meta Platforms (META) saw significant gains in its stock price during the first half of 2023. After a disappointing 2022, Meta's stock rebounded strongly this year as investors became more optimistic about the company's future prospects.

While Meta faced challenges in 2022 due to factors like Apple's privacy changes and competition from TikTok, the company made progress on its metaverse and AI initiatives in 2023. Meta also announced plans to reduce costs through layoffs and other measures.

Driven by renewed investor confidence, Meta's stock price rose sharply in the first two quarters of 2023. Meta's stock appreciation significantly outpaced the broader market in this period.

Giverny Capital Asset Management indicates Meta was one of the top-performing stocks among hedge funds in 2023. Meta's gains helped boost the returns of funds that held the stock.

In summary, Meta's stock rebounded strongly in the first half of 2023 after a weak 2022, driven by optimism about the company's future growth prospects. Meta was one of the top performing large-cap tech stocks among hedge funds and institutional investors in the early part of the year.

Source: Meta Platforms (META) Rose 138% in the First Half of 2023 (finance.yahoo.com) >>

Part 2：Meta Platforms FY2023 Q3 Earnings Report Recap

1. Meta Platforms Key Indicators and Historical Earnings Report

• - Meta Platforms FY2023 Q3 EPS was $4.39, YOY +167.68%
• - Meta Platforms PE Ratio today is 37.81 
• - Meta Platforms FY2023 Q3 Revenue was $34.1B, YOY +23.21% 
• - Meta Platforms FY2023 Q3 FCF was $13.9B, YOY +4271.92%
• - Meta Platforms FY2023 Q3 Current Ratio was 2.57, YOY -0.13% 
• - Meta Platforms FY2023 Q3 ROA was 5.48%, YOY +117.26%
• - Meta Platforms FY2023 Q3 ROE was 8.37%, YOY +137.81%
• - Meta Platforms FY2023 Q3 Gross Margin was 81.81%, YOY +3.07% 
• - Meta Platforms FY2023 Q3 Net Margin was 33.92%, YOY +113.91%

For more information, such as definitions and explanations of the above technical terms, please view:

Interpretation of Key Indicators >>

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2. Meta Platforms FY2023 Q3 Financial Highlights

• ● Family daily active people grew 7% year-over-year to 3.07 billion in June 2023.
  ● Family monthly active people increased 6% year-over-year to 3.88 billion in June 2023.
  ● Facebook daily active users grew 5% year-over-year to 2.06 billion on average in June 2023.
  ● Facebook monthly active users rose 3% year-over-year to 3.03 billion in June 2023.
  ● Ad impressions grew 34% and average ad price fell 16% year-over-year in Q2 2023.
  ● Revenue grew 11% year-over-year (12% on constant currency basis) to $32 billion in Q2 2023.
  ● Total costs and expenses increased 10% year-over-year to $22.6 billion in Q2 2023.
  ● Income from operations rose 12% year-over-year to $9.4 billion in Q2 2023.
  ● Operating margin held steady at 29% in Q2 2023.
  ● Effective tax rate declined to 16% in Q2 2023 from 18% in Q2 2022.
  ● Net income increased 16% year-over-year to $7.8 billion in Q2 2023.
  ● Diluted EPS rose 21% year-over-year to $2.98 in Q2 2023.

Source: Meta Reports Second Quarter 2023 Results (investor.fb.com) >>

3. Meta Platforms FY2023 Q3 Financial Statement Analysis

Meta reported revenue of $31.99 billion in Q2 2023, up 11% year-over-year. Advertising revenue was $31.5 billion, up 12% and comprising the vast majority of total revenue. Monthly and daily active users on Facebook and across the Family of Apps showed modest growth of 3-7% year-over-year.

Total costs and expenses were $22.61 billion, up 10% versus last year. This includes $1.87 billion in legal accruals, mainly related to a fine from the Irish Data Protection Commission. Operating income was $9.4 billion, resulting in an operating margin of 29%.

Net income for the quarter was $7.79 billion, up 16% year-over-year. Diluted EPS was $2.98, up 21%.

Meta is undergoing restructuring, including layoffs and facilities consolidation, which resulted in restructuring charges of $780 million in Q2. The company expects total restructuring charges to be around $4 billion in 2023.

Looking forward, Meta expects Q3 revenue of $32-34.5 billion and full year expenses of $88-91 billion. Capital expenditures are forecast at $27-30 billion for 2023, lowered from the prior estimate due to delays. Meta expects higher costs in 2024 driven by infrastructure spending, technical hiring, and Reality Labs losses.

Source: Meta Reports Second Quarter 2023 Results (investor.fb.com) >>

Part 3：Meta Platforms FY2023 Q4 Earnings Report Forecast & Preview

1. Meta Platforms FY2023 Q4 Forecast By Third Party Analyst Rating, December 4th

Following an extensive evaluation of Tesla's financial data, revenue, and stock trends over the last few quarters by more than 37 third-party financial analysts, META Stock has been given a Strong Buy rating. Analysts forecast an average stock price of $387.710 (Average) for the next 12 months.

- Third Party Analyst rating: Strong Buy

- Meta Platforms Price Target: $387.710

- Forecast of FY2023 Q4 EPS: $4.897

- Forecast of FY2023 Q4 Revenue: $38.9B

- Forecast of FY2023 Q4 EBIT: $15.5B

Source: https://www.benzinga.com/quote/META/analyst-ratings

For more information on what the analyst ratings may mean, visit https://pro.benzinga.com/blog/what-do-stock-analyst-ratings-mean/ (Benzinga is not affiliated with Moomoo Technologies Inc., Moomoo Financial Inc., or its affiliates.)

2. Meta Platforms Forecast By Technical Analysis, December 4th, 2023

For more information, such as definitions and explanations of the above technical terms, please view: 

Interpretation of technical indicators >>

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