Good Earnings, Sinking Shares- The Meta Platforms Q1 Conundrum
Meta Platforms ($META) Q1 FY12/24 Earnings Review
Summary
Q1 numbers were good but the stock headed for the basement anyway.
Revenue growth accelerated to 27% vs prior year, margins were up, cash levels held up well despite heavy capex spending.
The company is making sensible capital allocation decisions in order to maintain those growth rates going forward.
The stock is not expensive on fundamentals. Read on.
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
Not Only Only-Up
by Alex King
Meta Platforms reported its Q1 of FY12/24 couple of days ago. Immediately after earnings, the stock headed for the basement and kept digging; down 17% at one point during post-market trading hours. At the time of writing it’s now down ‘only’ 11%.
On the surface, the numbers were good. Revenue growth accelerated, margins were up, cash levels dropped some but it still has more net cash resources than most small countries, so the wolf won’t be at the door anytime soon.
Here’s the headline numbers.
We have upgraded our service to provide More Coverage, Deeper Analysis for Same Money. Subscribe to our one newsletter service, Cestrian Market Insight which will include a daily market analysis note, Continuous coverage of around 80-90 single-name stocks and ETFs, Extensive investor education material and Macro commentary and insight. If you’d like to sign up for the new Cestrian Market Insight newsletter - you can do so by clicking the button below. Just choose the “Market Insight” option.