ALB Limited 06.02.2023

Meta INC-Facebook

After the stock market closed on February 1, 2023, META ( Facebook ) announced its 2022 financial reports and upon examining its one-month chart, its revenue was higher than expected and it closed with an increase of 153.12 USD, marking the highest point of the month. On an annual basis, the revenue was also down. When we look at the MCAP, in 2021 it was 921,935.4 million USD, while in 2022 it was announced at 271,405.3 million USD. The reason for the increase in the stock price after the balance sheet was announced was due to the fact that the values announced were higher than the expectations. The company also announced a share buyback authorization of 40 billion USD and increased the remaining 10.9 billion dollars from previous buyback programs. In the fourth quarter, Meta recorded 4.2 billion USD in restructuring fees related to business interruptions. Mark Zuckerberg referred to 2023 as the "year of efficiency." In addition, Zuckerberg added during the webcast, "we are working to streamline our organization and make decisions faster by eliminating some mid-level managers and using artificial intelligence tools to help our engineers to be more productive. There will be more we can do to improve our efficiency, speed, and cost structure." This statement also indicated that they will continue to increase their capex and that more layoffs will occur in the future.

Revenue:

The expected revenue for the 4th quarter was 31.65bn USD, however, it was announced as 32.17bn USD, exceeding the expectation of most analysts. When looking at the 4th quarter advertising revenue since 2020, it has reached its highest point of 31.3bn USD in the 4th quarter of 2021. The total revenue for 2022 was announced as 116,609.0mio USD, a 1% decrease from the previous year. In the prepared report, the CFO's expectation for revenue in 2023 is 26-28.5bn USD.
Costs and Expenses
The data announced in 2021 as 71,176mio USD increased by 23% to 87,665mio USD in 2022.

Operating Margin:

The margin was reported as 24.82% in 2022, compared to 39.65% in 2021.

Capex:

Zuckerberg invested billions of dollars in the Metaverse, as evidenced by the increase in capex spending from 18,567.0 million USD in the previous year to 31,431.0 million USD this year. Despite this investment, Zuckerberg believes that the returns from these investments will come in the future, indicating that these investments are just the beginning of what they aim to achieve.

Net Income:

The end of 2022 figures were announced at 23,200 million USD, a 41% decrease compared to 2021.


META Stock Price Movement in 2022



META Stock Price – S&P500 1 Year Comparison

Tags: Meta INC-Facebook, Facebook Stock, Meta

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