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Investing Insights

Could Meta Make a Comeback?

Investing Insights

Morningstar, Ivanna Hampton, Sarah Hansen

Bonds, Stocks, Analysis, Advice, Trading, Funds, News, Investment, Morningstar, Entrepreneurship, Mutual, Ideas, Etfs, Finance, Investing, Business, Economic, Independent, Christine Benz

4.2539 Ratings

🗓️ 10 February 2023

⏱️ 19 minutes

🧾️ Download transcript

Summary

Also, three dividend stock ideas for income investors, and the world’s largest ETF turns 30.

Transcript

Click on a timestamp to play from that location

0:00.0

Please stay tuned for important disclosure information at the conclusion of this episode.

0:06.7

Here's what's ahead on this week's investing insights. Meta appears ready to make a comeback.

0:12.2

What our analyst thinks about the latest moves from Facebook's parent company.

0:16.5

Plus, we look at three dividend stocks, popular income investors, and a new way to invest rippled through

0:23.8

the financial markets 30 years ago. Morningstar's ETF investor newsletter editor will join me to discuss

0:30.7

the influence of the world's largest ETF. This is Investing Insights. Welcome to Investing Insights.

0:41.3

Welcome to Investing Insights.

0:46.1

I'm your host, Ivana Hampton, and let's get started with a look at the Morning Star headlines.

0:51.8

Facebook parent company, meta-platforms, appears well positioned for a return to growth.

0:55.8

The social media giant reported a better-than-ex than expected fourth quarter despite factors like currency headwinds and macro uncertainty. Both drove down revenue. Meta also

1:02.7

appears to have improved ad conversions on its apps. For example, that could include users clicking

1:08.9

on an ad, watching a video, or buying something

1:11.5

off an ad, and that is likely to raise demand from advertisers and lessen the impact of Apple's

1:17.8

privacy policy on revenue. Meta's network effect remains intact as it saw daily and monthly

1:24.7

user growth. Morningstar is pleased with management's effort to bring

1:29.3

costs under control while accelerating revenue growth. Meta's aggressive share buyback supports

1:35.4

our outlook. Meanwhile, we've slightly lowered our growth projections. It appears some advertisers

1:41.4

are hesitant about more spending due to fear of a possible economic downturn.

1:47.0

Morningstar is maintaining our $260 estimate of what we think the stock is worth, and we think it's undervalued.

1:54.8

Amazon is tightening its belt while focusing on long-term growth.

1:58.5

The e-commerce giant sales reached almost $150 billion in the

2:03.4

fourth quarter of 2022, and that was better than the company's outlook and Wall Street's

...

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