Meta’s post-earnings stock plunge an ‘overreaction,’ analyst says
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Published 2024-04-25
Erickson views the pressure on the stock price following the report as an "overreaction." He notes that although Meta beat on revenue and guidance figures, "the issue was obviously cost." Despite the potential for increased costs, Erickson emphasizes that the company is "still very very focused" on controlling expenses. However, he highlights that the money spent will be invested in areas such as infrastructure for "product development in the future."
Erickson notes Meta's investments into AI and operational spending serve three key purposes: First, it helps them develop "probabilistic models" to enhance the performance of ad campaigns. Second, it aids in recommending content, thereby improving the algorithm's effectiveness. Lastly, it increases "users' utility of Meta." Erickson believes that these factors contribute to future revenue growth, balancing out the increased spending.
#youtube #META #news
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All Comments (9)
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Good buy more shares.
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META HUGE CAPEX spending on AI !!!! ... if only there was a better investment, lol ... NVDA.
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Hi
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Big Tech is going down 40%! Super overvalued nosebleed numbers!
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LOL
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A crash and bullish market provides equal high-yield potential, it's all about information and strategy application, I've seen folks make huge 7figure profit in a crashing market and pull it off much easily in a bull market Unequivocally the crash/recession is getting somebody somewhere rich.
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Most of Meta's ads are Chinese crap from Temu, Shein and the like. The reason Meta is increasing revenue is because China is desperate to unload is overproduction so they're button mashing FB/IG ads.
