Today's video focuses on recent news impacting Meta Platforms (FB 0.45%), formerly known as Facebook. There have been numerous reports of increased competition, a freeze in hiring, and plans shifting away from the metaverse, all of which could portray a bearish sentiment. But are things as bad as headlines make them out to be? Here are some highlights.
- In the past few weeks, numerous reports have appeared that Meta Platforms is freezing hiring for its Reality Labs team, shopping team, the team working on Messenger Kids, and other projects. During its most recent earnings, the company discussed that it was going to slow down on expenses for the year, and it seems the hiring freeze is one of the ways to meet that goal.
- Meta Platforms has also mentioned that many of its investments are going into artificial intelligence (AI). AI will be an essential tool to improve its advertisement solutions and increase engagement on its platforms.
- It is important to note that even with all the investments Meta Platforms is making, the company still reported revenue growth, substantial profits, and roughly $8.5 billion in free cash flow during its most recent earnings.
*Stock prices used were the pre-market prices of May 18, 2022. The video was published on May 18, 2022.
