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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 611.910
Low
655.15
Averages
824.71
High
1117
Current: 611.910
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.
Chinese Companies, Including Moonshot AI, Consider Corporate Restructuring Following Meta-Manus Deal Reversal - The Information
Corporate Overhaul: A significant restructuring is underway at a Chinese firm, WeiGai Corporation, in response to recent market changes.
Impact of Meta-Manus Deal: The overhaul is influenced by the reversal of a deal involving Meta-Manus, highlighting the shifting dynamics in the corporate landscape.
See More
META SUBMITS SEC FILING FOR SIX-PART SENIOR NOTES OFFERING OF UP TO $25 BILLION
Meta's Financial Offering: Meta has filed for a six-part senior notes offering, aiming to raise up to $25 billion.
Purpose of the Funds: The funds raised from this offering are expected to be used for general corporate purposes, which may include investments and operational expenses.
See More
META TO ISSUE SIX TRANCHES OF SENIOR NOTES WITH DIFFERENT MATURITIES - SEC FILING
- Meta's Offering: Meta is providing six extra chances for senior notes with varying maturities.
- Purpose of Offering: The offering aims to enhance liquidity and financial flexibility for the company.
See More
META TO ISSUE VARIOUS SERIES OF SENIOR NOTES - SEC FILING
Meta's New Offerings: Meta has introduced multiple series of senior notes as part of its financing strategy.
Purpose of Senior Notes: The senior notes are intended to provide Meta with additional capital for various corporate purposes, including potential investments and operational expenses.
See More
Meta's Strong Q1 Performance Offset by Soaring Expenditures
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure outlook to $125 billion to $145 billion from a previous forecast of $115 billion to $135 billion, reflecting higher component costs, particularly in memory pricing, which could pressure future profitability.
- Strong Revenue Growth: The first-quarter revenue rose 33% year-over-year to $56.3 billion, marking the fastest growth since 2021; even on a constant-currency basis, revenue increased by 29%, indicating a robust business recovery despite currency fluctuations.
- User Engagement Trends: Meta's daily active users reached 3.56 billion in March, showing a slight decline due to internet disruptions in Iran and WhatsApp access restrictions in Russia, yet ad impressions grew by 19% year-over-year, and average ad prices rose by 12%, suggesting improving user engagement.
- Future Growth Outlook: Meta's guidance for second-quarter revenue is set at $58 billion to $61 billion, implying about 25% year-over-year growth; however, stripping out foreign currency effects, constant-currency growth is only 23%, indicating a potential deceleration in growth that investors should monitor closely.
See More
Mark Cuban's Assessment of TrumpRx
- Platform Impact: Mark Cuban rated TrumpRx a 'B', noting that while pharmaceutical stocks showed little reaction post-launch, the platform now lists 57 drugs, indicating potential in lowering prices, particularly in IVF and GLP-1 treatments.
- Pressure on Insurers: Cuban emphasized that TrumpRx is effectively pushing back against large insurance companies, which he believes could drive industry change, viewing this pressure as a form of progress despite the existing system's flaws.
- PBM Control Change: Cuban pointed out that removing Pharmacy Benefit Managers' (PBMs) control over formularies could quickly alter the pricing landscape, citing successful examples from state Medicaid systems where independent committees make coverage decisions.
- Healthcare Reform Outlook: Cuban believes that TrumpRx's efforts are not just about providing cheaper medications but also about instigating structural changes in the healthcare industry, which, while requiring time, could have significant long-term impacts.
See More
Chinese Companies, Including Moonshot AI, Consider Corporate Restructuring Following Meta-Manus Deal Reversal - The Information
Corporate Overhaul: A significant restructuring is underway at a Chinese firm, WeiGai Corporation, in response to recent market changes.
Impact of Meta-Manus Deal: The overhaul is influenced by the reversal of a deal involving Meta-Manus, highlighting the shifting dynamics in the corporate landscape.
See More
META SUBMITS SEC FILING FOR SIX-PART SENIOR NOTES OFFERING OF UP TO $25 BILLION
Meta's Financial Offering: Meta has filed for a six-part senior notes offering, aiming to raise up to $25 billion.
Purpose of the Funds: The funds raised from this offering are expected to be used for general corporate purposes, which may include investments and operational expenses.
See More
META TO ISSUE SIX TRANCHES OF SENIOR NOTES WITH DIFFERENT MATURITIES - SEC FILING
- Meta's Offering: Meta is providing six extra chances for senior notes with varying maturities.
- Purpose of Offering: The offering aims to enhance liquidity and financial flexibility for the company.
See More
META TO ISSUE VARIOUS SERIES OF SENIOR NOTES - SEC FILING
Meta's New Offerings: Meta has introduced multiple series of senior notes as part of its financing strategy.
Purpose of Senior Notes: The senior notes are intended to provide Meta with additional capital for various corporate purposes, including potential investments and operational expenses.
See More
Meta's Strong Q1 Performance Offset by Soaring Expenditures
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure outlook to $125 billion to $145 billion from a previous forecast of $115 billion to $135 billion, reflecting higher component costs, particularly in memory pricing, which could pressure future profitability.
- Strong Revenue Growth: The first-quarter revenue rose 33% year-over-year to $56.3 billion, marking the fastest growth since 2021; even on a constant-currency basis, revenue increased by 29%, indicating a robust business recovery despite currency fluctuations.
- User Engagement Trends: Meta's daily active users reached 3.56 billion in March, showing a slight decline due to internet disruptions in Iran and WhatsApp access restrictions in Russia, yet ad impressions grew by 19% year-over-year, and average ad prices rose by 12%, suggesting improving user engagement.
- Future Growth Outlook: Meta's guidance for second-quarter revenue is set at $58 billion to $61 billion, implying about 25% year-over-year growth; however, stripping out foreign currency effects, constant-currency growth is only 23%, indicating a potential deceleration in growth that investors should monitor closely.
See More
Mark Cuban's Assessment of TrumpRx
- Platform Impact: Mark Cuban rated TrumpRx a 'B', noting that while pharmaceutical stocks showed little reaction post-launch, the platform now lists 57 drugs, indicating potential in lowering prices, particularly in IVF and GLP-1 treatments.
- Pressure on Insurers: Cuban emphasized that TrumpRx is effectively pushing back against large insurance companies, which he believes could drive industry change, viewing this pressure as a form of progress despite the existing system's flaws.
- PBM Control Change: Cuban pointed out that removing Pharmacy Benefit Managers' (PBMs) control over formularies could quickly alter the pricing landscape, citing successful examples from state Medicaid systems where independent committees make coverage decisions.
- Healthcare Reform Outlook: Cuban believes that TrumpRx's efforts are not just about providing cheaper medications but also about instigating structural changes in the healthcare industry, which, while requiring time, could have significant long-term impacts.
See More
