Today's video focuses on Meta Platforms (FB +0.83%), formerly known as Facebook, and its earnings reported on Oct. 25 after the market closed. Meta Platforms has announced significant changes as it focuses more on augmented and virtual reality. Here are some highlights from the video.
- Meta Platforms reported revenue of $29 billion, representing a growth of 35% year over year and roughly flat quarter over quarter. Out of the $29 billion of total revenue, $28.3 billion came from advertisements and approximately $0.7 billion from its other segment.
- For Meta Platforms' fourth quarter, the company expects $31.5 billion to $34 billion of revenue, factoring in uncertainties from the recent iOS changes. The company will also report its revenue in two new segments. The first is "family of apps," which includes revenue from Facebook, Instagram, WhatsApp, and other services. The second is Facebook Reality Labs (FRL), which includes revenue from augmented and virtual reality consumer hardware, software, and content.
- After earnings, numerous analysts decreased their price target for Meta Platforms, but many maintained their bullish buy ratings. Investors are torn about Meta Platforms' intense focus on the metaverse and how this will affect its profits and future growth.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Oct. 29, 2021. The video was published on Oct. 29, 2021.
