Meta stock has lost $137B in market cap on weak Q2 revenue guidance
finance.yahoo.com
Meta stock has lost $137B in market cap on weak Q2 revenue guidance
1–10 of 15 posts
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#2Stocks go up, stocks go down. Still sitting over 100% YoY.
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#3[deleted]
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#4Truth Social, meanwhile, gained 10% today, now worth $5 billion on the revenues of a local taco chain and the net losses of a foundering 19th-century industrial empire. So we can stop pretending that stock prices mean things.
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#5Last year in november, this was worth $90, now its $430 (was $490 before ER)
wth happened? what do people believe that Meta is doing that made it jump 5x and now seems to say its only wroth 4x where it was at its yearly lows?
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#6All because they are not going to be making as much $5B in quarterly revenue. That's about 20B/year. Or 60b in 3 years. Or a 2x PE ratio. Didn't go down as much as I would expect.
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#7So, how’s that bet on VR panning out?
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#8Truth Social, meanwhile, gained 10% today, now worth $5 billion on the revenues of a local taco chain and the net losses of a foundering 19th-century industrial empire. So we can stop pretending that stock prices mean things.
Stock prices do mean things, just not the things people think they do.
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#9Truth Social, meanwhile, gained 10% today, now worth $5 billion on the revenues of a local taco chain and the net losses of a foundering 19th-century industrial empire. So we can stop pretending that stock prices mean things.
There are companies for whom stock price in meaningful, and other companies where prices are fueled by teh greater fools theory.
Meta is huge, it's a staple of numerous large funds and practically every American investor out there owns a stake in it. Significant movement in their stock price indicates something is going on.
Truth Social is a meme stock whose price is driven up by people looking to make a quick buck playing hot potato. Very few holders give a damn about the long-term viability of the company. Most are looking to ride the pump-and-dump.
Re: Meta stock has lost $137B in market cap on weak Q2 revenue guidance
#10Last year in november, this was worth $90, now its $430 (was $490 before ER) wth happened? what do people believe that Meta is doing that made it jump 5x and now seems to say its only wroth 4x where it was at its yearly lows?
I think it's three things:
1. The hangover in tech caused by post-Covid overhiring and layoffs, as well as negative sentiment surrounding inflation over the last year feels like it's ending or at least calming down - somewhere between lower staffing spend internally and a rosier feeling economy, people feel a higher valuation makes sense.
2. Meta's riding and part of leading a general tide that's lifting all tech boats due to hype in the AI space surrounding recent LLM developments. Meta successfully releasing frontier models in the space shows they're capable of being a crucial player in the space and still have the talent internally to compete with other big players if they so choose, although thus far they've felt content with releasing free models as a broad-side attack on their competitors' moats. The market additionally wants to cost in the non-trivial possibility that these technologies will either receive massive uptake across other industries, or the possibility the tech's power and intelligence will massively improve in the next few years, potentially even to the level of something approximating or beating an average intellectual human at knowledge work, which would make all these tech companies making this technology very, very rich.
3. Focus in the company appears to be shifting back towards their core competencies of social media technologies, taking ground from Tiktok with new offshoots such as shorts with Reels, and as described above, their AI projects, which all feels like a return to form after their mostly ill-fated VR and metaverse projects, which are now being de-emphasized. This is felt as boding well for the company's future growth prospects, as those projects felt like dead-ends.