Should you buy Meta stock? (February 2024)

Published first at https://www.3minutebreakdowns.com Meta stock analysis. Ticker: $META Meta just reported earnings and the stock jumped by 14%. At the after-hours price of $450 dollars, the company is now valued at 1.18 trillion. With 65 billion of cash and 18 billion of long term debt, the enterprise value is 1.14 trillion. This was a strong earnings report from Meta adding to a hugely impressive year. Revenue increased 25% in the quarter to 40 billion and net income increased to 14 billion, taking the net income margin up to 35%. The number of daily people using one of Meta’s apps rose 8% to 3.19 billion and the company introduced its first ever dividend of $2 a share. On a yearly basis, revenue increased 16% to just under 135 billion, net income was 39 billion and free cash flow was 43 billion. So based on the after hours price, Meta stock is now valued at 30 times earnings and 26 times free cash flow. Crucially, Meta did this while keeping a lid on expenses which grew by only 1%. All in all, there isn’t much to criticize about Meta’s results. The company did lose 16 billion on its Reality Labs division but that hardly matters when the core business is performing so well. Meta’s investments into AI are clearly paying off and providing real value for advertisers with ad impressions increasing by 21%. #investing #metastock #3mb