Investing In Meta Stock
Despite a tumultuous year, there are signs of recovery and potential for growth in Meta, making it a compelling investment opportunity
1 year ago fb has deleted 250b dollar with falling of 26 % considered to be worst day in history
Since November FB has increased by 70%
Last year meta was considered as a dead company.
TikTok was attracting some users away , iOS 14 impacted Facebook's ability to track user data for targeted advertising, as many users are choosing to opt-out of tracking. Meta also was spending a lot of money on the Meta Verse which in retrospect was a very bad idea after the balloon was popped.
the US Federal Trade Commission (FTC) and 46 states filed antitrust lawsuits against Facebook, alleging that the social media giant engaged in anticompetitive practices to maintain its dominant position in the market. The lawsuits focus on Facebook's acquisitions of Instagram and WhatsApp, which the FTC alleges were made to eliminate competition.
A whistleblower named Frances Haugen, who worked as a data scientist at Facebook until she left the company in 2021 has stated that she leaked the documents because she believes that Facebook's products and policies are harmful to society, and that the company has not done enough to address these issues. ,
Libra project has fell.
After the storm was over the sparks from their business model has shined back and reminded to the market that Meta is a cash cow
Eventually there is a moderate user growth and meta group has 3billion users with Instagram Instagram and WhatsApp
Meta has inserted reels to attract back the youngsters for their response to TikTok popularity among younger generations and features short-form video content so they will increase engagement and will increase thier income from B2B ads.
Meta plan for buy back in 2023 has increased for 40 Billion Dollar
So why Meta's buy back shall be great for investors
1. Increase in earnings per share: When a company buys back its own shares, it reduces the total number of outstanding shares. As a result, the company's earnings are divided among a smaller number of shares, which can increase the earnings per share (EPS) metric. This can make the stock more attractive to investors and potentially increase its value.
2. Return of capital to shareholders: A stock buyback is a way for a company to return capital to its shareholders. By buying back shares, the company is effectively giving cash back to its shareholders, which can be seen as a positive for investors.
3. Sign of confidence: A stock buyback can be seen as a sign of confidence by a company's management. If a company is willing to use its own cash to buy back shares, it suggests that the management team believes the company is undervalued and that buying back shares is a good use of capital.
4. Tax benefits: A stock buyback can also provide tax benefits for investors. When a company buys back shares, it reduces the total number of outstanding shares, which can increase the value of each share. If investors decide to sell their shares after the buyback, they may be able to realize a capital gain and potentially pay lower taxes on that gain.