Meta Platforms:News
Return to: Meta Platforms
January 2023
Jan 9, Jefferies is bulish on Meta in 2023, SI=1%, I=8
Jefferies analyst Brent Thill maintained price target of Meta at $155 and set the rating at outperform. His reasons are:
(1) The stock is undervalued at 16 times the 2023 earnings estimates.
(2) He believes the company will reduce its expenses by more than expected this year, citing that in 6 out of 7 years, Meta's cost have come in below the midpoint annual guidance.
https://www.barrons.com/articles/meta-stock-alphabet-uber-tech-51673287543?siteid=yhoof2
Jan 4, Meta fined €390m by Irelands Data Protection Commission, SI=1%, I=7
See also: EU regulation ruling: User don't have to agree to personalized ads SI=-2%, I=9, Dec 6
Ireland’s Data Protection Commission ruled that Meta can't send personalized ads to its Facebook and Instagram users. As a result, it imposed a fine of 390 million euros ($411 million) on Meta for violating EU privacy laws when it said it can do so. Meta can appeal the ruling, but it's a long process that could take years.
Good news after the ruling of European regulators earlier last month?Meta Platform News#EU regulation ruling: User don't have to agree to personalized ads SI=-2%, I=9, Dec 6
December 2022
Meta agrees to $725m Cambridge Analytica settlement SI=0%, I=7, Dec 23
Meta agrees to pay $725 million to settle a long-running lawsuit that claimed Facebook illegally shared user data with the research firm Cambridge Analytica.
The agreement requires the approval of a federal judge overseeing the suit.
Meta could have ended up paying hundreds of millions of dollars more had it gone to trial and lost the case.
https://finance.yahoo.com/news/meta-agrees-pay-725-million-062807166.html
Meta to continue spending 20% on reality labs, SI=-(2-3%), I=9, December 19
A social media post by Meta's CTO Andrew Bosworth indicate that the company will continue spending 20% of its total cost and expenses in reality labs in 2023. His post said:
"As also reflected in our Q3 results, about 80% of Meta’s overall investments support the core business, with the other 20% going toward Reality Labs. It’s a level of investment we believe makes sense for a company committed to staying at the leading edge of one of the most competitive and innovative industries on earth."
His post was dedicated at showcasing the benefits of AR and VR devices.
https://tech.facebook.com/reality-labs/2022/12/boz-look-back-2023-look-ahead/
Link to discussion: https://www.investmentwiki.org/wiki/Talk:Meta_Platform_News#:~:text=Test%202-,SI%3D0%25%2C%20I%3D7%2C%20December%2023,-%5Bedit%20source
EU concerned that Meta breaches antitrust rules, SI=-(1-2%), I=8, December 19
EU warns Meta of breaching antitrust rules by distorting competition in the online classified ads business.
EU is concerned that Meta ties its online classified ad business, Facebook Marketplace, to Facebook and imposes unfair trading conditions on rivals “for its own benefit.”
Companies that breach EU antitrust rules can be hit with fines worth up to 10% of their annual global revenue.
https://ca.movies.yahoo.com/eu-accuses-meta-antitrust-breaches-110324437.html
JPMorgan increases price target on Meta, SI=1-2%, I=8, December 16
Jp Morgan analyst Doug Anmuth has increased price target of Meta stock to $150 from $115 and raised rating from neutral to overweight. His upgrade is based on:
(1) Better cost controls by management on both total expenses and capital expenditures.
(2) Lessening sales impact from Apple iOS privacy changes.
( 3) The company stands to compete more effectively against surging rival TikTok.
(4) Reels monetization may gain steam and become "at least" neutral to sales in later 2023.
(5) Valuation on the stock is "compelling" after the steep 2022 drop.
https://finance.yahoo.com/news/5-reasons-why-meta-stock-just-caught-a-rare-upgrade-111438556.html
"No TikTok on Government Devices Act" passed by Senate, SI=0%, I=9, December 15
The “No TikTok on Government Devices Act,” was passed via unanimous consent yesterday, meaning that no member objected to the bill.
This proposal would “prohibit certain individuals from downloading or using TikTok on any device issued by the United States or a government corporation.”
The bill would still need to be passed by the House and signed by President Biden to become law.
It had been introduced by Sen. Josh Hawley (R-Mo.) in 2020 and had been passed by the senate but had failed to pass Congress. But Hawley reintroduced the same bill in the 2021-2022 sitting.
https://finance.yahoo.com/news/senate-votes-ban-tiktok-government-014103449.html
https://www.congress.gov/bill/117th-congress/senate-bill/1143
https://www.fastcompany.com/90667383/tiktok-bytedance-ban-2021-rubio
Bill seeking to ban TikTok introduced in Senate, SI=1-2%, I=9, December 13
A bill that seeks to ban TikTok has been introduced by US lawmakers namely Sen. Marco Rubio, R-Fla., and Reps. Mike Gallagher, R-Wisc., and Raja Krishnamoorthi.
The bill would ban “all transactions from any social media company in, or under the influence of, China, Russia, and several other foreign countries of concern.”
EU regulation ruling: User don't have to agree to personalized ads SI=-2%, I=9, Dec 6
European Union regulators have ruled that Meta Platforms' Facebook and Instagram should not require users to agree to personalized ads based on their digital activity.
The ruling will enable Meta platform users to opt out of personalized ads resulting in less information with which to build audience for it.
https://finance.yahoo.com/news/eu-raises-concerns-over-metas-142449576.html
https://www.wsj.com/articles/metas-targeted-ad-model-faces-restrictions-in-europe-11670335772
November 2022
Zuckeberg optimistic about Meterverse on a longer-term horizon, SI=1%, I=8, November 30
CEO Mark Zuckerberg said he is still optimistic about the metaverse on a longer, “five-to-ten-year horizon” while noting that he's unmoved by critics of his company’s bet on the metaverse.
According to Zuckerberg, Meta spends 80% of its time focused on its legacy social media suite of apps, which include Instagram, Facebook, WhatsApp and others, and the rest the time is spent on Metaverse.
Link to discussion page: https://www.investmentwiki.org/wiki/Talk:Meta_Platform_News#:~:text=any%20material%20impact%3F-,SI%3D1%25%2C%20I%3D8%2C%20November%2030,-%5Bedit%20source
WhatsApp and Messenger will drive sales sooner than metaverse, SI=1-2%, I=9, November 18
While addressing employees, Mark Zuckerberg said WhatsApp and Messenger will drive sales sooner than metaverse.
Zuckerberg downplayed the amount of money Meta is investing on Reality Labs by saying that it only accounted for 20% of its Meta's budget while people were its biggest expense, followed by capital expenditure.
Zuckerberg’s comments reflect a change in tone and emphasis after investing heavily on Metaverse.
Link to discussion page: https://www.investmentwiki.org/wiki/Talk:Meta_Platform_News#:~:text=10%20per%20cent.%22-,SI%3D1%2D2%25%2C%20I%3D9%2C%20November%2018,-%5Bedit%20source
Meaning of Symbols Used
SI- means expected short term impact on the stock
I= Refers to the importance of the news