{"id":2927,"date":"2023-02-06T16:42:14","date_gmt":"2023-02-06T16:42:14","guid":{"rendered":"https:\/\/maxrezmedia.com\/website_131ddb8a\/?p=2927"},"modified":"2024-08-19T16:43:37","modified_gmt":"2024-08-19T16:43:37","slug":"meta-platforms-bounces-back-into-the-top-ten","status":"publish","type":"post","link":"https:\/\/maxrezmedia.com\/website_131ddb8a\/meta-platforms-bounces-back-into-the-top-ten\/","title":{"rendered":"Meta Platforms Bounces Back into the Top Ten"},"content":{"rendered":"

Bryan Taylor, Chief Economist, and Michelle Suzanne, Finaeon<\/p>\n

Meta Platforms, formerly known as Facebook, had a huge move last week, rising $35.65 from $153.12 to $188.77.\u00a0\u00a0The company announced that they were buying back $40 billion in their shares over the next year.\u00a0\u00a0This represents about 8% of the shares in the company and will drive the price of Meta up further as the company adds to the demand for the stock.\u00a0<\/p>\n

Mark Zuckerberg promised that he would make Meta a \u201cleaner and more efficient company\u201d and would lay off 13% of its employees.\u00a0\u00a0Good news for the shareholders; bad news for the employees.<\/p>\n

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Figure 1.\u00a0\u00a0Meta Platforms Stock Price in 2023<\/strong><\/b><\/span><\/p>\n

Meta\u2019s fourth-quarter results beat analysts\u2019 revenue estimates.\u00a0\u00a0Meta beat expectations on revenues, bringing in $32.17 billion versus the expected $31.65 billion, but adjusted earnings per share fell short at $1.76 versus the expected $2.26. Facebook had 2 billion daily users during the fourth quarter, or about 25% of the global population. But it wasn\u2019t the news about the past that caused the stock price to pop, but anticipation of future use and revenue.<\/p>\n

Meta started buying back its shares in 2017 and spent $28 billion buying back its stock in 2022.\u00a0\u00a0Meta had announced a $50 billion increase in its share repurchase in October 2021 when Facebook changed its name to Meta Platforms Inc.\u00a0Meta stock peaked at 373.28 on July 28, 2021 and dipped down to 88.91 on November 3, 2022. The stock has more than doubled in price since then, so Meta made a good investment in buying back its stock during the last year.<\/p>\n

Dr. Taylor and I recently wrote an article entitled \u201cThe Decline of the Top Ten Stocks in 2022<\/a>\u201d which observed that Meta had fallen from number 6 in market capitalization at the end of 2021 to number 19 at the end of 2022 as its market cap declined by 66%.\u00a0\u00a0But during 2023, the stock has recovered. The 20% increase in the price of the stock yesterday catapulted Meta stock back into the Top Ten according to market capitalization, moving them up from Number 13 to Number 8 in one day.\u00a0\u00a0Who says 13 is unlucky?<\/p>\n

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Figure 2.\u00a0\u00a0Meta Platforms Stock Price Since It Changed its Name in October 2021<\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Bryan Taylor, Chief Economist, and Michelle Suzanne, Finaeon Meta Platforms, formerly known as Facebook, had a huge move last week, rising $35.65 from $153.12…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146,1],"tags":[],"class_list":["post-2927","post","type-post","status-publish","format-standard","hentry","category-february-2023","category-insights"],"acf":[],"_links":{"self":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/2927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/comments?post=2927"}],"version-history":[{"count":3,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/2927\/revisions"}],"predecessor-version":[{"id":2932,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/posts\/2927\/revisions\/2932"}],"wp:attachment":[{"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/media?parent=2927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/categories?post=2927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxrezmedia.com\/website_131ddb8a\/wp-json\/wp\/v2\/tags?post=2927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}