On May 5, 2023, Meta Platforms Inc. announced its plan to divest Kustomer, a business-software company acquired in 2020, as part of its efficiency drives to refocus on its core business. The acquisition of Kustomer was valued at around $1 billion, and Meta is now exploring strategic alternatives for the company. Despite this, it will continue to support its product and customer base throughout the process. Ryan Moore, a spokesman for Meta, stated that the company has decided to focus on its fastest-growing business messaging offerings, including the monetization opportunity for WhatsApp.
According to sources cited by the Wall Street Journal, the planned deal to divest Kustomer involves three venture firms. However, the names of these firms have not been disclosed. Meta’s decision to deny Kustomer comes amidst regulatory scrutiny and antitrust lawsuits. The company is also under pressure to address concerns about its impact on society, including the spread of misinformation and hate speech on its platforms.
META Stock Opens Lower on May 5, 2023 Despite Positive Earnings Growth Projections
On May 5, 2023, META stock opened at 236.06, slightly lower than the previous day’s close of 237.03. Throughout the day, the stock experienced a range of 232.93 to 238.20. The volume for the day was 17,889,391, which was the same as the average volume for the past three months.
META’s market cap was reported at $615.9B, making it one of the largest companies in the technology services sector. Despite a negative earnings growth of -38.26% last year, the company’s earnings growth for this year is projected to be +34.85%.
Revenue growth for META was -1.12% last year, indicating a slight decline in overall revenue. However, the company’s net profit margin was reported at 19.90%, which strongly indicates profitability.
META’s P/E ratio was 28.9, slightly higher than the industry average. The price/sales ratio was 2.79, and the price/book ratio was 5.00.
META is classified as an internet software/services company, and its corporate headquarters are located in Menlo Park, California. The company is set to report its earnings on July 26, 2023, with an EPS forecast of $2.83. META’s annual revenue for last year was reported at $116.6B, with a yearly profit of $23.2B.
While META’s stock experienced a slight decrease on May 5, 2023, its positive earnings growth projections and net solid profit margin indicate that it remains a profitable and successful in the technology services industry.
Meta Platforms Inc Stock Performance: Analysts Predict Bullish Future Prospects
Meta Platforms Inc, formerly known as Facebook Inc, is a company that has been making headlines for years. On May 5, 2023, the company’s stock performance was closely watched by investors and analysts alike. According to the data, 49 analysts have offered 12-month price forecasts for Meta Platforms Inc. The median target for the company’s stock is $280.00, with a high estimate of $350.00 and a low estimate of $100.00. The consensus among 57 polled investment analysts is to buy stock in Meta Platforms Inc. Moving on to the current quarter, the earnings per share for Meta Platforms Inc is $2.83, with sales of $30.8 billion. Overall, the stock performance of Meta Platforms Inc on May 5, 2023, was positive, with analysts and investors bullish on the company’s prospects.
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