Hacker News Reader

Comment by rvz | Hacker News Reader

Like I said before, the premature death of Meta Platforms constantly screamed here and even orchestrated and parroted by the mainstream media, has been greatly exaggerated.

Still profitable in a market downturn even with rising inflation fears causing everyone else in big tech to slightly miss expectations. DAUs, MAUs up again and they will be here for another 10+ years like it or not.

It's business as usual folks.

View on HN

This one will be interesting. On the one hand, still hugely profitable. An operating margin of 29% is insane. On the other hand, people expect growth and no revenue growth and a large drop in income is definitely not what investors want to see.

The interesting thing is they were operating at more than 40% profit margins for years now. A drop to 29% margins [1] is actually pretty significant and puts it in line with profit margins at most other larger tech firms, and not at the top of the market anymore.

[1] Looks like this is pre-tax? I'm calculating 25% post-tax margins.

They lost 3 billion on their metaverse play. Remove that from the equation and their margins are still bonkers

Given how the market is reacting, or non-reacting, then yeah this is business as usual for Meta. But hating on Meta is just free karma on HN so why not? You don't come to these threads to deal with the truth, you just voice your feelings or farm karma.

That's nice, but what does the future hold? Companies aren't valued on the here and now.

This is after all the company that is betting its future on clown shows like this: https://twitter.com/MetaQuestVR/status/1551943338038726657

It's hard to decide what is the more inept management between the Twitter crypto avatar bros and the meta "meta" verse people.

The price of the stock is not based on "business as usual." It is based on relentless growth.

with a PE of 13?

Oh, it's that low? I guess they are priced for "slow decline." For comparison, IBM's P/E ratio was around 10 before the pivot to a consulting company.

Reply on news.ycombinator.com