ETF Winners Amid Last Week's Record Loss in "Magnificent 7"
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2024
0mins
Should l Buy META?
Source: Business Insider
- Technology Stocks Performance: Last week saw a collective loss of $950 billion from major tech stocks, surpassing the previous record loss in January 2022.
- Individual Performances: Tesla, Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta experienced significant market cap reductions due to stock declines.
- Semiconductor Market Impact: The semiconductor sector faced losses, with Nvidia's significant decline indicating potential sustained downturn.
- Wall Street Volatility: Heightened volatility and uncertainty were observed due to concerns over inflation and Federal Reserve policy shifts.
- U.S. Retail Sales Data: U.S. retail sales exceeded expectations in March, showing growth and positive revisions for February data.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 592.920
Low
655.15
Averages
824.71
High
1117
Current: 592.920
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta Platforms' AI-Driven Revenue Growth
- User Engagement Surge: Meta's use of AI technology to enhance user engagement on Facebook and Instagram has resulted in a 30% year-over-year increase in time spent on Instagram Reels, significantly driving advertising revenue and strengthening the company's competitive position in the social media market.
- Record Revenue Achievement: In 2025, Meta achieved a record revenue of $200.9 billion, a 22% increase from the previous year; despite a slight 3% decline in net income due to a one-off tax provision, excluding this provision would have resulted in a 20% profit growth, showcasing the company's robust profitability.
- Soaring Capital Expenditures: Meta's AI-related capital expenditures reached $72.2 billion, an 84% increase, which, while not immediately impacting profits, poses long-term profitability challenges, especially with Reality Labs facing a staggering $19.2 billion loss.
- Market Valuation Potential: With a current market capitalization of $1.5 trillion, Meta is projected to reach $3 trillion within three years; if Wall Street's earnings forecasts hold true, Meta's stock would need to rise 82% by the end of 2027 to match the Nasdaq-100's P/E ratio, indicating significant investment potential.
See More
ZELESTRA OBTAINS $600 MILLION IN GREEN FINANCING FOR 440 MW SOLAR PORTFOLIO IN TEXAS SUPPORTED BY META PPAS
- Funding Announcement: Zelestra has secured $600 million in green financing.
- Project Details: The funding will support a 440 MW Texas solar portfolio backed by Meta.
See More
China Evaluates $2 Billion Manus Sale to Meta Amid Founders' Travel Restrictions - FT
China Review: A $2 billion sale involving Meta has been reported, highlighting significant financial movements in the tech industry.
Founders Barred: The founders of the company involved in the sale have been restricted from leaving the country, indicating potential legal or regulatory issues.
See More
Facebook Launches Creator Fast Track Program for Influencers
- Incentive Program: Facebook's newly launched Creator Fast Track program offers guaranteed payments of $1,000 per month for influencers with at least 100,000 followers, increasing to $3,000 for those with over 1 million followers, aiming to attract more content creators to boost user engagement on the platform.
- User Time Comparison: Despite having a significant male user base aged 18-24, Facebook users spend an average of just 19 hours per month on the platform, significantly lower than TikTok's 33 hours and YouTube's 27 hours, highlighting Facebook's struggle to attract video content engagement.
- Video View Increase: Meta's management reported a 7% lift in Facebook video views due to optimization efforts, indicating that the company is enhancing video content appeal through internal adjustments rather than relying solely on organic growth from user-generated content.
- Strategic Implications: By incentivizing influencers, Facebook aims to enhance engagement among younger users and maintain relevance in a competitive social media landscape, although the long-term effectiveness of such short-term incentives remains questionable.
See More
Meta Cuts Hundreds of Jobs to Adapt for AI Era
- Job Cuts Announcement: Meta Platforms Inc. is reportedly trimming several hundred jobs, primarily within its Reality Labs division, which focuses on hardware and wearable products, as part of a strategic initiative to prepare for the AI era.
- Affected Departments: The layoffs will also impact selected employees in social media and recruiting, indicating a comprehensive restructuring across various business units to enhance efficiency and adapt to market dynamics.
- Company Statement: A Meta spokesperson noted that the company regularly restructures or implements changes to ensure teams are positioned to achieve their goals, highlighting a proactive approach to future challenges and opportunities.
- Stock Market Reaction: Despite the layoffs, Meta's stock saw a modest increase of 0.8% in early trading on Wednesday, suggesting initial market approval of the company's strategic adjustments.
See More
New Mexico's $375M Ruling Against Meta Signals Major Changes Ahead
- Significant Damages: A New Mexico jury has ordered Meta to pay $375 million for failing to comply with laws aimed at protecting children, highlighting the increasing regulatory scrutiny on the company's child safety practices.
- Legal Actions Ahead: New Mexico Attorney General Raúl Torrez announced plans to seek injunctive relief, demanding fundamental changes in Meta's platform design, age verification processes, and algorithms to ensure a safer online environment for children.
- Appeal Plans: A Meta spokesperson stated that the company respectfully disagrees with the verdict and intends to appeal, indicating ongoing disputes over legal responsibilities and potential impacts on future operations.
- Upcoming Trial Phase: The second phase of the trial is set to begin on May 4 without a jury, which may expose Meta to additional financial liabilities, further increasing operational pressures in New Mexico.
See More
Meta Platforms' AI-Driven Revenue Growth
- User Engagement Surge: Meta's use of AI technology to enhance user engagement on Facebook and Instagram has resulted in a 30% year-over-year increase in time spent on Instagram Reels, significantly driving advertising revenue and strengthening the company's competitive position in the social media market.
- Record Revenue Achievement: In 2025, Meta achieved a record revenue of $200.9 billion, a 22% increase from the previous year; despite a slight 3% decline in net income due to a one-off tax provision, excluding this provision would have resulted in a 20% profit growth, showcasing the company's robust profitability.
- Soaring Capital Expenditures: Meta's AI-related capital expenditures reached $72.2 billion, an 84% increase, which, while not immediately impacting profits, poses long-term profitability challenges, especially with Reality Labs facing a staggering $19.2 billion loss.
- Market Valuation Potential: With a current market capitalization of $1.5 trillion, Meta is projected to reach $3 trillion within three years; if Wall Street's earnings forecasts hold true, Meta's stock would need to rise 82% by the end of 2027 to match the Nasdaq-100's P/E ratio, indicating significant investment potential.
See More
ZELESTRA OBTAINS $600 MILLION IN GREEN FINANCING FOR 440 MW SOLAR PORTFOLIO IN TEXAS SUPPORTED BY META PPAS
- Funding Announcement: Zelestra has secured $600 million in green financing.
- Project Details: The funding will support a 440 MW Texas solar portfolio backed by Meta.
See More
China Evaluates $2 Billion Manus Sale to Meta Amid Founders' Travel Restrictions - FT
China Review: A $2 billion sale involving Meta has been reported, highlighting significant financial movements in the tech industry.
Founders Barred: The founders of the company involved in the sale have been restricted from leaving the country, indicating potential legal or regulatory issues.
See More
Facebook Launches Creator Fast Track Program for Influencers
- Incentive Program: Facebook's newly launched Creator Fast Track program offers guaranteed payments of $1,000 per month for influencers with at least 100,000 followers, increasing to $3,000 for those with over 1 million followers, aiming to attract more content creators to boost user engagement on the platform.
- User Time Comparison: Despite having a significant male user base aged 18-24, Facebook users spend an average of just 19 hours per month on the platform, significantly lower than TikTok's 33 hours and YouTube's 27 hours, highlighting Facebook's struggle to attract video content engagement.
- Video View Increase: Meta's management reported a 7% lift in Facebook video views due to optimization efforts, indicating that the company is enhancing video content appeal through internal adjustments rather than relying solely on organic growth from user-generated content.
- Strategic Implications: By incentivizing influencers, Facebook aims to enhance engagement among younger users and maintain relevance in a competitive social media landscape, although the long-term effectiveness of such short-term incentives remains questionable.
See More
Meta Cuts Hundreds of Jobs to Adapt for AI Era
- Job Cuts Announcement: Meta Platforms Inc. is reportedly trimming several hundred jobs, primarily within its Reality Labs division, which focuses on hardware and wearable products, as part of a strategic initiative to prepare for the AI era.
- Affected Departments: The layoffs will also impact selected employees in social media and recruiting, indicating a comprehensive restructuring across various business units to enhance efficiency and adapt to market dynamics.
- Company Statement: A Meta spokesperson noted that the company regularly restructures or implements changes to ensure teams are positioned to achieve their goals, highlighting a proactive approach to future challenges and opportunities.
- Stock Market Reaction: Despite the layoffs, Meta's stock saw a modest increase of 0.8% in early trading on Wednesday, suggesting initial market approval of the company's strategic adjustments.
See More
New Mexico's $375M Ruling Against Meta Signals Major Changes Ahead
- Significant Damages: A New Mexico jury has ordered Meta to pay $375 million for failing to comply with laws aimed at protecting children, highlighting the increasing regulatory scrutiny on the company's child safety practices.
- Legal Actions Ahead: New Mexico Attorney General Raúl Torrez announced plans to seek injunctive relief, demanding fundamental changes in Meta's platform design, age verification processes, and algorithms to ensure a safer online environment for children.
- Appeal Plans: A Meta spokesperson stated that the company respectfully disagrees with the verdict and intends to appeal, indicating ongoing disputes over legal responsibilities and potential impacts on future operations.
- Upcoming Trial Phase: The second phase of the trial is set to begin on May 4 without a jury, which may expose Meta to additional financial liabilities, further increasing operational pressures in New Mexico.
See More
