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  • Writer's pictureRealFacts Editorial Team

Meta Drops on Good Earnings, The Numbers Just Weren’t Good Enough

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Meta stock has risen 39% so far this year, in order to maintain this high valuation, investors want to see big things in terms of Meta’s fundamentals. Meta reported earnings this week and they actually came in quite solid, they earned $4.71 a share with revenues of $36.5 billion. This was a 27% increase in sales from the same period last year.

Despite these strong earnings, Meta’s stock dropped 15% overnight after the report. Earnings were strong, but they didn’t wow the investors, at least not enough for them to continue buying shares. One of the big issues bothering investors is that Meta is currently increasing how much they invest in different areas, particularly AI development. Investing in the company is good, but it can take time for those millions to start generating positive cash flows.

The data looks good overall and Meta looks strong, but the numbers weren’t large enough to wow investors in the short-term. The company is investing in new development and still showing strong earnings in other areas. This could mean that Meta is a good buy for the long run, especially seeing as you can get cheaper prices with this 15% decrease in the short term.

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