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META

Analysis before buying or selling Meta shares

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Meta stock, formerly known as Facebook stock, is currently one of the largest market capitalizations on the Nasdaq stock index in the United States. If you are interested in buying or selling this stock, this page provides you with information about the stock, including a detailed presentation of Meta, its competitors and partners, as well as the advantages and disadvantages of the stock on the stock market and the various elements to be analysed as part of the fundamental analysis of this stock.

Dividend payments
Can I receive dividends when I buy Meta shares?
No
 
Information on Meta shares
ISIN code: US30303M1027
Ticker: NASDAQ: META
Index or market: Nasdaq
 

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Elements to consider before selling or buying Meta shares

Analysis N°1

It will of course be important to keep an eye on the diversification of Meta's activities and portfolio, which regularly implements strategies for acquiring new companies. 

Analysis N°2

The expansion of existing platforms will also have to be closely monitored, the main one being Facebook, which is currently developing, particularly in the world of Metavers.

Analysis N°3

The business model followed by Meta will also be an element to be closely analysed, with the possibility for the group to make profits from other sources of revenue than advertising.

Analysis N°4

Of course, the publication of Meta's annual results and their evolution over time should also be followed closely. Particular attention should be paid to the section on investments and the cash flow available to make them.

Analysis N°5

It will also be necessary to keep an eye on Meta's competition by monitoring the activities and results of companies in direct competition with the group, as well as the distribution of market shares in the various segments concerned.

Analysis N°6

Regulatory developments in social networking and in various developed countries are also an element to be considered in your fundamental analysis of this stock. These new obligations may indeed hamper the group's freedom to develop some of its activities.

Analysis N°7

Meta's press coverage will also influence its share price, and it will be necessary to closely monitor the various cases that may affect its brand image.

Analysis N°8

Finally, it will also be necessary to monitor the geographical development of Meta, with its establishment in certain countries where, for the moment, the use of these platforms is still prohibited.

Analysis before buying or selling Meta shares
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General presentation of Meta

Let's now take a closer look at Meta Platforms Inc, which is the issuer of the Meta share, its activities and sources of revenue.

Meta is a Nasdaq-listed US company specialising in the provision of online social networking services.

To better understand Meta's business, it is possible to divide it into different categories according to the revenue generated and in this way:

  • The operation of social networking, messaging and photo/video sharing platforms still currently accounts for 98.1% of the group's turnover with the platforms Facebook, Instagram, Messenger and WhatsApp.
  • Next is the sale of virtual and augmented reality products, software and devices, which accounts for 1.9% of Meta's turnover. These include Meta Quest virtual reality headsets, Facebook Portal connected displays and mobile devices.

The Meta group's revenues are split between advertising sales for 97.5% and other sources of revenue for 2.5%.

It is also interesting to know the geographical breakdown of the Meta Group's revenue, which currently generates 43.7% of its revenue in North America, 24.6% in Europe, 22.7% in Asia-Pacific and 9% in the rest of the world.

The major competitors of Meta

We now take a look at who the Meta Group's main competitors are in the global market.

Twitter

The Twitter group is of course the main competitor of the Meta group and its social network Facebook. It is also a microblogging social network run by the company Twitter Inc.

TikTok

The mobile application TIC Toc is a video sharing and social networking application that was launched in 2016 and is developed by the Chinese company ByteDance. It is also one of the main social networks competing with Facebook.

YouTube

Youtube is a hosting, video and social media website where users can upload, watch, comment, rate and share streaming videos, and has been owned by the Google group since 2006.

Tencent Holdings 

Also among Meta's main competitors is the Chinese company Tencent, which was founded in 1998 and specialises in internet and mobile services, as well as online advertising. Among the various services offered by Tencent are social networks, web portals, online commerce and multiplayer online games.

Snap Inc 

Finally, Snap, formerly known as Snapchat, is an American company from California that offers social networking applications, of which Snapchat is Bitmoji, as well as spectacles with a camera. It was listed on the New York Stock Exchange in 2017.


The major partners of Meta

While the Meta Group has many competitors and adversaries in its market, it can also count on the establishment of strategic partnerships with major global companies. To help you understand the interest of this type of partnership, we propose to discover 3 recent partners of the Meta Group.

Microsoft 

First and foremost, in 2022, the Meta Group signed a strategic partnership with the computer giant Microsoft as part of the Meta Connect 2022 event, presenting the Meta Quest pro headset and new features for the Metavers of tomorrow. The Microsoft partnership will integrate key applications such as Teams, Microsoft 365 and Windows 365 with the Meta virtual reality headset. In particular, it will be possible to join a Teams meeting from inside the Meta Horizon workrooms.

Carrefour

Recently, the French group Carrefour also announced the launch of a strategic partnership with Meta. This will be deployed in 9 integrated countries of the group, including France, Italy, Spain, Romania, Poland, Belgium, Taiwan, Argentina and Brazil. The partnership will cover many aspects of Carrefour's business, from internal communications to employee experience, customer relations, digital advertising and leaflet digitisation. It will use a site, various platforms and services from Meta, including Facebook, Instagram, WhatsApp Messenger and Workplace.

Amazon Web Services

Finally, the Meta group has also recently signed a strategic partnership with the AWS subsidiary of the Amazon group, as part of the strengthening of a collaboration with several different objectives. In addition to cloud computing, the partnership between the two giants will include Meta's software library, PyTorch.

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Positive factors for Meta shares
The factors in favour of a rise in the Meta share price:

Still in the context of analysing Meta shares on the stock market and before buying or selling its stock, you may also want to know what the advantages and disadvantages of this company are.

The main advantages that Meta has over its competitors include the following:

  • First of all, the Meta brand is not yet well known, but the Facebook brand is particularly popular worldwide and is considered one of the strongest brands in the social networking market.
  • Another of Meta's strengths is the strong diversification of its business portfolio, which protects it from the risks of a single sector. The group's revenues are very well spread across all of these activities.
  • Another of Meta's strengths is that the company is still the leader in its field in the social networking sector, despite the emergence of major competitors.
  • The Meta group also benefits from the impeccable and visionary leadership of Mark Zuckerberg. This is based primarily on corporate culture, but also on stability, increased profitability, innovation and sustainability, with a minimum of internal conflicts.
  • We also appreciate the numerous investments made by Meta in research and development. The group relies mainly on technological innovation through research and development to evolve its business and meet future consumer needs. This is also the reason why Meta does not pay dividends to its shareholders.
  • Finally, the marketing strategy of the Meta group is also appreciated, which is both simple and effective. It should be remembered that the company's main source of income is still from advertising.
Negative factors for Meta shares
The factors in favour of a drop in the Meta share price:

Of course, Meta and its stock market share also have a few weak points, which we will now explore in detail.

  • First of all, Meta and its various platforms have often been criticised for the negative way in which it handles its users' data. The group must therefore quickly put in place answers and solutions to these major problems.
  • The fact that the Meta group relies mainly on advertising for its revenue generation is also a weak point that can potentially cause it to lose money in the event of a recession in this sector.
  • Finally, Meta is facing increasing competition, particularly from China, which also relies on innovation to provide cutting-edge products and services.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the main shareholders of the Meta Group?

The Meta Group's capital is held by a number of major private shareholders including The Vanguard Group with 7.45%, Fidelity Management & research with 4.52%, SSgA Funds Management with 4.08%, T Rowe Price Associates with 3.77%, Capital Research & management International Investors with 2.24%, BlackRock Fund Advisors with 2.19%, Capital Research & management World Investors with 1.90%, Geode capital Management with 1.76%, Capital Research & Management Global Investors with 1.30% and Norges Bank Investment Management with 1.24%.

Does the Meta share currently pay a dividend?

Since its creation and first listing on the stock exchange, Meta, formerly known as Facebook, has never paid a dividend to its shareholders. This is because the group prefers to invest a large part of its cash flow in innovation and growth development rather than rewarding the holders of these shares.

What are the latest known results for the Meta Group?

Currently, Meta has a market capitalisation of $220 billion with 2022 revenues of $117.9 billion and net income of $39.4 billion. Thanks to its very high market capitalisation, Meta is currently one of the leading stocks listed on the Nasdaq index.

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