Okay, Meta, I See You And Your Change In Expenses


  • Meta Platforms talked about reducing expenses for most of 2022 but never got around to it.
  • However, the company is now taking a reduction in expenses and CapEx seriously, and I’ve been waiting for this to come for three quarters.
  • With a drastic reduction in expense growth, negative CapEx growth, and a 20% increase in advertiser conversions, the worst is now behind the company.
  • With the story shifting, the stock may work toward $250, with an opportunistic pullback possibly occurring before it gets there.

Facebook Changes Its Name To "Meta"

Leon Neal

Last May, I outlined how Meta Platforms (NASDAQ:META) decided to finally shift its resources away from metaverse investments and toward dealing with its declining revenue growth. I applauded how it was the right decision and would turn

Data by YCharts

Meta Platforms Expense and CapEx over the years

Chart mine, data from Meta’s 10-Ks

Meta's Quarterly Year-Over-Year Revenue Growth

Chart mine, data from Seeking Alpha

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.

Decrypt The Cash In Tech With Tech Cache

Do two things to further your tech portfolio. First, click the ‘Follow’ button below next to my name. Second, become one of my subscribers risk-free with a free trial, where you’ll be able to hear my thoughts as events unfold instead of reading my public articles weeks later only containing a subset of information. In fact, I provide four times more content (earnings, best ideas, etc.) each month than what you read for free here. Plus, you’ll get ongoing discussions among intelligent investors and traders in my chat room.

Join now!

Leave a Reply

Your email address will not be published. Required fields are marked *