AI Spotlight on META
Company Description
Meta Platforms, Inc.engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide.It operates in two segments, Family of Apps and Reality Labs.
The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately.The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere.The company was formerly known as Facebook, Inc.
and changed its name to Meta Platforms, Inc.in October 2021.Meta Platforms, Inc.
was incorporated in 2004 and is headquartered in Menlo Park, California.
Market Data
Last Price | 687 |
Change Percentage | 1.55% |
Open | 696.82 |
Previous Close | 676.49 |
Market Cap ( Millions) | 1734324 |
Volume | 28889170 |
Year High | 710.79 |
Year Low | 393.05 |
M A 50 | 605.05 |
M A 200 | 538.83 |
Financial Ratios
FCF Yield | 3.12% |
Dividend Yield | 0.29% |
ROE | 38.17% |
Debt / Equity | 26.86% |
Net Debt / EBIDTA | 6.33% |
Price To Book | 9.53 |
Price Earnings Ratio | 27.92 |
Price To FCF | 32.07 |
Price To sales | 10.54 |
EV / EBITDA | 21.31 |
News
- 01:50 - 5 Largest Portfolio Holdings: Fundamentals Don't Change As Rapidly As Stock Prices
- Jan -30 - Microsoft & Meta Earnings: Are DeepSeek Assumptions Premature?
- Jan -30 - Instagram tests Reels pause feature as TikTok remains in limbo
- Jan -30 - Meta and Microsoft defend AI capex spend post-DeepSeek
- Jan -30 - Microsoft, Meta AI spend: Tech players are still 'winning bigger'
- Jan -30 - Meta uncharacteristically quiet about $5 billion in VR losses
- Jan -30 - Mark Zuckerberg Defends Embrace of Trump Administration in Meta Employee Q&A
- Jan -30 - Tesla, Meta, and Microsoft: Tips to play the AI trade
- Jan -30 - Mark Zuckerberg said that Meta missed TikTok's rise because it didn't seem 'social' enough, leaked recording reveals
- Jan -30 - Meta CEO Mark Zuckerberg says DeepSeek will 'benefit' the company and the future of its AI business
- Jan -30 - What We Learned About the Future of AI from Microsoft, Meta Earnings
- Jan -30 - Meta Gains on AI Optimism, Microsoft Slumps
- Jan -30 - Meta CEO Mark Zuckerberg tells employees to 'buckle up' for an 'intense year' in a leaked all-hands recording
- Jan -30 - Meta's AI & Smart Glasses Could Drive 20%+ Upside in 2025
- Jan -30 - Meta's AI Investments, Llama Expansion, Ad Tech Growth Earn Analyst Conviction
- Jan -30 - META Ads & Users Bolster "Impressive" Quarter, A.I. Outlook Critical
- Jan -30 - Meta Beats Earnings But Here's the Other Reason the Stock Rallied
- Jan -30 - Why Meta Stock Is Soaring Today
- Jan -30 - Nasdaq Moves Lower; Meta Platforms Posts Strong Sales
- Jan -30 - META Q4 Earnings and Revenues Surpass Estimates, Rise Y/Y
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Family of Apps
Expected Growth : 12 %
What the company do ?
The Family of Apps from Meta Platforms, Inc. includes Facebook, Instagram, and WhatsApp, offering a suite of social media and messaging services.
Why we expect these perspectives ?
Meta Platforms, Inc.'s Family of Apps growth is driven by increasing user engagement, rising online advertising demand, and expanding e-commerce integrations. Additionally, the company's strategic acquisitions, continuous innovation, and improvement in user experience contribute to its growth. Furthermore, the growing popularity of social commerce, online events, and digital payments also fuel the segment's growth.
Segment nΒ°2 -> Reality Labs
Expected Growth : 10 %
What the company do ?
Reality Labs is a research and development division of Meta Platforms, Inc. focused on developing augmented reality (AR) and virtual reality (VR) technologies.
Why we expect these perspectives ?
Reality Labs' 10% growth is driven by increasing adoption of virtual and augmented reality technologies, growing demand for metaverse experiences, and Meta's strategic investments in research and development. Additionally, the segment benefits from the company's strong brand recognition, expanding ecosystem of developers and partners, and rising sales of VR/AR hardware and software products.
Meta Platforms, Inc. Products
Product Range | What is it ? |
---|---|
A social networking platform that allows users to connect with friends, family, and other people who share similar interests. | |
A photo and video-sharing social networking platform that allows users to share content and engage with others. | |
A messaging app that allows users to send messages, make voice and video calls, and share media. | |
Messenger | A messaging platform that allows users to communicate with friends and businesses. |
Oculus | A virtual reality technology company that develops and manufactures VR hardware and software. |
Workplace | A platform that allows teams to collaborate and communicate through groups, messaging, and video conferencing. |
Portal | A series of smart display devices that allow users to make video calls, control smart home devices, and access information. |
Facebook Marketplace | A platform that allows users to buy and sell goods and services within their local communities. |
Facebook Dating | A dating platform that allows users to create a dating profile, match with others, and engage in conversations. |
Meta Platforms, Inc.'s Porter Forces
Threat Of Substitutes
Meta Platforms, Inc. has a medium threat of substitutes due to the presence of alternative social media platforms and online advertising channels. However, the company's strong brand recognition and large user base mitigate this threat to some extent.
Bargaining Power Of Customers
Meta Platforms, Inc. has a low bargaining power of customers due to its dominant position in the social media and online advertising markets. The company's large user base and diversified revenue streams reduce the bargaining power of individual customers.
Bargaining Power Of Suppliers
Meta Platforms, Inc. has a low bargaining power of suppliers due to its significant scale and negotiating power. The company's large advertising revenue and diversified supplier base reduce the bargaining power of individual suppliers.
Threat Of New Entrants
Meta Platforms, Inc. has a low threat of new entrants due to the high barriers to entry in the social media and online advertising markets. The company's strong brand recognition, large user base, and significant investments in technology and infrastructure make it difficult for new entrants to compete.
Intensity Of Rivalry
Meta Platforms, Inc. operates in a highly competitive industry with intense rivalry among established players. The company faces significant competition from other social media platforms, online advertising companies, and emerging technologies.
Capital Structure
Value | |
---|---|
Debt Weight | 19.56% |
Debt Cost | 3.95% |
Equity Weight | 80.44% |
Equity Cost | 9.97% |
WACC | 8.79% |
Leverage | 24.31% |
Meta Platforms, Inc. : Quality Control
Meta Platforms, Inc. passed 8 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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DASH | DoorDash, Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. It operates DoorDash and Wolt marketplaces, which provides an array of services β¦ |
PINS | Pinterest, Inc. operates as a visual discovery engine in the United States and internationally. The company's engine allows people to find inspiration for their lives, including recipes, style and home β¦ |
SNAP | Snap Inc. operates as a camera company in North America, Europe, and internationally. The company offers Snapchat, a camera application with various functionalities, such as Camera, Communication, Snap Map, Stories, β¦ |
GOOG | Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and β¦ |