Meta Platforms, ER, Transcript and CC: Takeaways

Sunraya
2022-02-22

Meta Platforms (FB), Earning Reports, Transcript and Conference Call: Takeaways‌




Focusing on the Main Risk Factors‌:

1. Competition, TikTok attracts young adult users from Meta platforms. Hence, Reels was created to challenge TikTok in the long term, to ensure young adult users are using Reels instead of TikTok. Google and Amazon taking away market share for Advertising Marketing services.

2. Investing in Metaverse, long term project, if its unsuccessful will damage cash flows and other incur more expenditure for the companies.

3. Not generating and losing clients through marketplaces on ads services.


Action plan:

1. Optimize Reels to generate higher monetising services and shift to short form videos to improve overall engagement throughout FB and IG, (Put ads on Reels and change FB interface to refocus growth of younger audience).

2. Enhancing WhatsApp and Messenger to compete with Telegram, Discord and Slack. Integrate Apps with E-commerce, such as, Partnering with Uber and JioMart to help book a ride or have their groceries delivered right from a chat. (Integrate with other Apps, E.g. WeChat: Able to buy stuff on their apps).

3. Expanding Metaverse, focus on VR, AI computing and integrating it with Meta apps (FB & IG) for 2D and 3D experiences. (Progress: maybe 25%, long way to go). - Reason: Community sharing started from Text, followed on by Camera and Photo-taking, then now Videos (Primary thing) and in future AR and VR. [Meta wants to be the first mover advantage in VR and AR’s world in community sharing].


Financials Statement:

Income Statement: (Great)‌


YoY: Revenue up 37.2% from 2020.

Net Income: Increased 10 billion from 2020 Fiscal Year.

EPS: Increased from 10.22 to 13.99 as of 2021 ending.

Overall: Fantastic, no idea why they focus on Q4 itself, which causes the drop.


Balance Sheet: (Beautiful)

-Cash on Hand: 16bn

-No Long Term Debt


Cash Flow: (Great)

1. FCF of 39bn

2. Cash from Ops: Increase 19bn from 2020 to 2021.

Overall: Financials are good, just analysts expected too much from FB for their Q4’s earnings report.


As always, stay safe, and may the market be ever in your favour~


‌$Meta Platforms, Inc.(FB)$‌


Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • RDPD富爸穷爸
    2022-02-22
    RDPD富爸穷爸
    The only reason I can come up with is the big boys are scaring retailers into selling cheap to them. It's all part of their game plan 😂
    • Sunraya: 
      I totally agree! Recent 13F fillings shows more big boys buying FB too. Scare tactics to shake the retails!
  • MamieBenson
    2022-02-22
    MamieBenson
    If FB wants to achieve a breakthrough, the key point is to be novel enough and stay at the front of science and technology, so as to continue to attract young people.
  • NinaEmmie
    2022-02-22
    NinaEmmie
    I used to be very optimistic about FB. Because both social media and advertising revenue can make it a lot of money. But now I'm worried about its future. Meta doesn't seem to be as good as we expected.
  • BenjiFuji
    2022-03-25
    BenjiFuji
    Does Meta have a strong moat 5-10 years down the road? Whatsapp->Telegram, Reels->Tik Tok, Fb-> Discord. Whats your thoughts?
    • BenjiFuji: 
      So far Mark’s been doing a good job. Good points, thanks
    • Sunraya: 
      IMO, i think Meta will be in the business for the next 10 years. Metaverse may see success, really depends on how well the users respond to the VR/AR stuff. [Cont]
    • Sunraya: 
      So the best way to measure Meta, is time and good management. I have no doubt Mark will push Meta further. But i will keep an eye on their 10-K in the next 2-3 years, for higher growth.
    • Sunraya: 
      Based on just IG and WA, this two apps can generate billions in revenue. But we will have to see the ROIC for Meta in the next few years. Burning way too much cash flow is not feasible too. [Cont]
  • AthenaVeblen
    2022-02-22
    AthenaVeblen
    FB seems to need to make adjustments as soon as possible. Tik tok has undoubtedly robbed many of its users.
  • MurrayBulwer
    2022-02-22
    MurrayBulwer
    These risk factors are indeed a big problem. That's the main reason why I'm no longer optimistic about FB.
Leave a comment