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Meta Platforms:Quarterly Results/2023 Q2: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q2 (view source)
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==== Cost savings projections from headcount reduction. ==== | |||
* Argus Research Senior Securities Analyst Joseph Bonner: "This is a 24% cut. So it's a big cost cutting measure to save about '''$8 billion on their 2023 expense projections.'''"<ref>https://finance.yahoo.com/news/meta-is-giving-the-market-what-it-wants-analyst-says-191031349.html</ref> | |||
* Morgan Stanley analyst Brian Nowak: "We estimate that a '''10% reduction''' in the 2Q:22 ~$18.5 billion run rate operating expenses (excluding depreciation and amortization) would imply '''~$5 billion of annual operating expense savings in 2023.''' We arrive at this by reducing the 3Q operating expense base by $1.8 billion then assume 4Q:22/'23 opex grows in line with our current sequential opex forecast."<ref>https://finance.yahoo.com/news/meta-cost-cutting-160158115.html#:~:text=If%20Meta%20goes%20through%20with,operating%20expense%20savings%20in%202023.%22</ref> Nowak noted that Opex savings of $3B to $8B adds up to an incremental 43 cents to $1.99 a share in 2023 earnings<ref>https://seekingalpha.com/news/3885402-reported-meta-cost-cuts-could-lead-to-10-earnings-boost-morgan-stanley</ref>. | |||
* JP Morgan analyst, Doug Anmuth believes the 10,000 headcount reduction last year could result in $8 billion annual cost savings. “We view the headcount reduction favorably in light of Meta’s slowing revenue growth and significant hiring increases over the last several quarters. Based on 2022 expenses per employee estimates, '''the headcount reduction could theoretically remove around $8 billion of costs on an annualized basis''',” said Anmuth<ref>https://www.jpmorgan.com/insights/research/future-of-big-tech</ref>. | |||
* Stone Foxe Capital, Seeking Alpha: "Just cutting 11,000 employees at an average cost of $150k would cut $1.65 billion in wage and benefits alone. Meta '''can probably reduce costs by another $5 billion annually by slashing those employee counts.'''"<ref>https://seekingalpha.com/article/4587249-meta-platforms-surgical-knife</ref> | |||
== Analysts Commentaries == | == Analysts Commentaries == | ||