Meta: Revenue Beat, Undervalued And WhatsApp Has Huge Potential


  • Meta Platforms, Inc. is the king of social media and reported steady user growth of 4.9% across its Family of Apps which had 2.96 billion daily active people in Q4,22.
  • The company beat revenue estimates for Q4, and increased its revenue by 16% sequentially despite a 4.5% decline year-over-year.
  • Meta has approximately 2 billion monthly active users on WhatsApp which are not currently being monetized.
  • My conservative estimate of a $5/month subscription model which 5% of users signed up to could generate an extra $6 billion per year for the company, on an enhanced version of WhatsApp with extra features.
  • My discounted cash flow valuation model indicates Meta Platforms, Inc. stock is undervalued intrinsically and its billions of dollars invested into the Metaverse are not being priced in.

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Kevin Dietsch

Meta Platforms, Inc. (NASDAQ:META) is the leading social media giant which, of course, owns Facebook, Instagram, etc. The company has been untouchable for over a decade, and even benefited from the lockdown of 2020 as the use of social media accelerated. However, since the start

Data by YCharts

Advertising Revenue

Advertising Revenue (Meta Q4,22 report with author edits)

Family Daily Active People

Family Daily Active People (Q4,22 report with author annotations)

Facebook Monthly Active Users

Facebook Monthly Active Users (Q4,22 report with author annotations)

WhatsApp JioMart

WhatsApp JioMart (Q4,22 report)

Meta Avatar

Meta Avatar (Graphic by author at Deep Tech Insights )

Reality Labs

Reality Labs (Q4,22 report)

Net Income

Net Income (Q4,22 report)

Operating Income and Margins

Operating Income and Margins (Q4,22 report with author annotations)

Meta R&D

Meta R&D (Q4,22 report)

Meta stock valuation 1

Meta stock valuation 1 (created by author Deep Tech Insights)

Meta stock valuation 2

Meta stock valuation 2 (created by author Deep Tech Insights)

Data by YCharts

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.

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