Very good earnings report
The Meta stock is up +5% today after the company reported Q2 numbers above expectations of Wall Street analysts. Revenue was up +11% YoY and net income alsoincreased double digit to $7.79 billion. The company reduced headcount significantly, -14% YoY which helped to reduce cost and improve profitability.
Metaverse shock digested
Zuckerberg and his company got bashed a lot last year about their plans around the so called Metaverse which didn’t turn out as planned. The costs exploded and Meta lost billions of dollars and sent the stock crashing.
But since end of last year the tide is turning. Not because of the Metaverse project but the rest of the company is doing really well and earning lots of cash still with selling advertising spots on their platforms. Meta stock is up more than +150% YTD alone and the old ATH is not that far away anymore.
The Meta stock certainly was a great trade if you got in 6-8 months ago but personally I don’t like the business model of Meta and was never invested. Selling people‘s personal data for advertisement is nothing I would want to support.
What do you think of Meta? Have you been part of the recent Rallye?
