Meta: Buy ‘The Year Of Efficiency’


  • Meta stock surges as much as 20%, after the company reported Q4 2022 results.
  • Although YoY revenue growth in Q4 2022 was negative 4%, the social media giant’s topline beat analyst consensus estimates by about $475 million.
  • Absent restructuring charges, Meta’s adjusted EPS would have been $3.
  • With Meta dedicating 2023 to ‘a year of efficiency’, I argue the company has lots of room to expand profitability in 2023 vs 2022.
  • I update my EPS expectations for Meta. And I now calculate a fair implied share price of $254.56/share.

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Following the Q3 crash, I was a strong advocate of buying the dip in Meta Platforms (NASDAQ:META). And reflecting on the social media giant’s Q4 quarter, paired with a close to 100% price appreciation since the

Meta vs SPY 12 months performance

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Meta Q4 2022 reporting

Meta Q4 2022 reporting

Meta Q4 2022 reporting

Meta Q4 2022 reporting

Meta valuation

Author’s Calculation

Meta valuation sensitivity table

Author’s Calculation

Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: not financial advise

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