Meta:Q1 2023 Earnings Preview | HF Analysis

Meta platforms (formerly Facebook, Inc.) reports its earnings results for First quarter 2023 on 26y April (Wednesday), after Market close. The technology conglomerate with a market capitalization of more than $550 billion and headquartered in California, US, is engaged in connecting people and society as well as helping businesses grow through Family of Applications (FoA) Including Facebook, WhatsApp, Instagram, Messenger, etc. The company also develops hardware, software, and consumer content related to augmented and virtual reality (grouped under Reality Labs (RL) clip), hoping to expand beyond 2D screens into the future of digital communication, i.e. the metaverse.

Figure 1: Meta’s Annual Revenue (US$ Million), 2009-2022. source:nation

Meta’s annual revenue crossed the $100 billion threshold for the first time ever in 2021. For fiscal year 2022its revenue decreased slightly by -0.01% (YoY) to 116.6B. This was too The first time in a decade The company reported a loss in revenue. Net income also decreased -41% (r / y) to $39.37B.

Figure 2: Facebook DAU vs. MAU. source: nation

Facebook remains the most popular social networking site worldwide, with 2.95B active users. Throughout 2022, the company continued to see active users (daily and monthly) grow but at a slow pace. As of the fourth quarter of 2022, the company has announced it Dau And always receipt 2.0 b And 2,963Brespectively 3.68% And 1.75% From the same period last year.

Figure 3: Reported Sales of Meta Platforms, Inc vs. Analyst Expectations. source:CNN Business

Meta Platforms, Inc. reported 32.2B Sales in the fourth quarter of 2022, up 16% (P / P) than the previous quarter, but down -4.66% (y/y) from the same period last year (the third consecutive quarter of declining sales). However, management noted that advertising revenue (the segment that generates most of its revenue) slowed by -4% to $31.3 billion, after weaker ad demand and increased competition globally. In addition, Apple App Tracking Transparency Measures It is expected to have a negative impact on the company, while reality labs It remains a money-losing project at least in the near term. The outlook remains as bleak as the CFO Susan Lee announced,”… is still affected by unstable and volatile macroeconomic conditionsThe company should Cut 10,000 jobs In the coming months, after the resignation of 11,000 jobs in November last year. finally , Privacy settlement of $725 million Because the suit will also affect the outlook.

Figure 4: Reported EPS for Meta, Inc. platforms versus analyst expectations. source: CNN Business

EPS was reported in $1.76 In the fourth quarter of 2022. Total earnings per share for the year $8.59down more -37% (YoY) from 2021. In the upcoming earnings release, consensus estimates for sales stood at $27.6Bunder -14.3% (q/q) from the previous quarter, remaining constant with the same period last year. On the other hand, EPS is expected to increase $2.02a slight rise 14.8% (P / P) than the previous quarter, but down -25.7% (o/o) from the same period last year.

Technical Analysis

# meta (meta) the stock price closed more -3.8% last week. The price of the asset has witnessed a strong recovery since the fourth quarter of 2022, after it found support at $88.09a level not seen since July 2015. The 100-week simple moving average and $236 (50.0% of France, extending from all-time highs in September 2021 to lows in October 2022) served as the closest resistance to watch. Gaining a solid floor above the mentioned level may indicate a change in the direction of the trend, and the bulls may continue to test the next resistance at $271 (FR 61.8%) f $321 (FR 78.6%). On the contrary, it broke without the nearest support $201 It may encourage more selling pressure, which will push the price of the asset towards the next support at $158 (France 23.6%) and $88.

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Larence Chang

Market analyst

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