Meta Platforms Inc – Competiti-To The Moon - Tiger Brokers Online Investing Community

2022-02-07

Meta Platforms Inc – Competition knocks growth and raises expenses

Recommendation: BUY (Maintained); TP US$312.00, Last close: US$237.09; Analyst: Jonathan Woo

• 4Q21 earnings in line with expectations. FY21 revenue/PATMI at 102/105% of our FY21e forecasts

• Apple iOS 14 privacy changes decreases the accuracy of FB’s targeted ads, making it increasingly tougher to track and measure the outcomes of these ad campaigns

• The company guided weak 1Q22 revenue growth of 3-11% and FY22e expenses to rise at least 26% to US$90bn-95bn. FB is also undertaking major capital expenditure of US$29bn-34bn to beef up its IT infrastructure.

• We maintain a BUY recommendation with a reduced DCF target price from US$424.00 to US$312.00 (WACC 6.6%, g 3.5%). Our target price is lowered due to growth pressures from increased competition and reduced earnings of 24% due to increased expenditures

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

zingle
2022-02-07
zingle
Meta is currently facing two fates: to be the king of metaverse or Myspace.
snixee
2022-02-07
snixee
Now shouting for investors to buy, is it for institutions to leave safely?
whimsie
2022-02-07
whimsie
Meta's share price will continue to fall. This analyst is irresponsible at all.

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FY21 revenue/PATMI at 102/105% of our FY21e forecasts• Apple iOS 14 privacy changes decreases the accuracy of FB’s targeted ads, making it increasingly tougher to track and measure the outcomes of these ad campaigns• The company guided weak 1Q22 revenue growth of 3-11% and FY22e expenses to rise at least 26% to US$90bn-95bn. FB is also undertaking major capital expenditure of US$29bn-34bn to beef up its IT infrastructure.• We maintain a BUY recommendation with a reduced DCF target price from US$424.00 to US$312.00 (WACC 6.6%, g 3.5%). Our target price is lowered due to growth pressures from increased competition and reduced earnings of 24% due to increased expenditures</body></html>","htmlText":"<html><head></head><body>Meta Platforms Inc – Competition knocks growth and raises expensesRecommendation: BUY (Maintained); TP US$312.00, Last close: US$237.09; Analyst: Jonathan Woo• 4Q21 earnings in line with expectations. FY21 revenue/PATMI at 102/105% of our FY21e forecasts• Apple iOS 14 privacy changes decreases the accuracy of FB’s targeted ads, making it increasingly tougher to track and measure the outcomes of these ad campaigns• The company guided weak 1Q22 revenue growth of 3-11% and FY22e expenses to rise at least 26% to US$90bn-95bn. FB is also undertaking major capital expenditure of US$29bn-34bn to beef up its IT infrastructure.• We maintain a BUY recommendation with a reduced DCF target price from US$424.00 to US$312.00 (WACC 6.6%, g 3.5%). Our target price is lowered due to growth pressures from increased competition and reduced earnings of 24% due to increased expenditures</body></html>","text":"Meta Platforms Inc – Competition knocks growth and raises expenses Recommendation: BUY (Maintained); TP US$312.00, Last close: US$237.09; Analyst: Jonathan Woo • 4Q21 earnings in line with expectations. 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