Meta Platforms Profitability Analysis

FBDelisted Stock  USD 169.49  1.83  1.07%   
Based on Meta Platforms' profitability indicators, Meta Platforms may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in April. Profitability indicators assess Meta Platforms' ability to earn profits and add value for shareholders.
For Meta Platforms profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Meta Platforms to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Meta Platforms utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Meta Platforms's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Meta Platforms over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Please note, there is a significant difference between Meta Platforms' value and its price as these two are different measures arrived at by different means. Investors typically determine if Meta Platforms is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Meta Platforms' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Meta Platforms Return On Equity vs. Beta Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Meta Platforms's current stock value. Our valuation model uses many indicators to compare Meta Platforms value to that of its competitors to determine the firm's financial worth.
Meta Platforms is one of the top stocks in beta category among related companies. It is one of the top stocks in return on equity category among related companies reporting about  20.62  of Return On Equity per Beta. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Meta Platforms by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Meta Platforms' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Meta Platforms' earnings, one of the primary drivers of an investment's value.

Meta Return On Equity vs. Beta

Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Meta Platforms

Beta

 = 

Covariance

Variance

 = 
1.41
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Meta Platforms

Return On Equity

 = 

Net Income

Total Equity

 = 
29.07
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Meta Return On Equity Comparison

Meta Platforms is currently under evaluation in return on equity category among related companies.

Meta Platforms Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Meta Platforms, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Meta Platforms will eventually generate negative long term returns. The profitability progress is the general direction of Meta Platforms' change in net profit over the period of time. It can combine multiple indicators of Meta Platforms, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California. Meta Platforms operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 77805 people.

Meta Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Meta Platforms. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Meta Platforms position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Meta Platforms' important profitability drivers and their relationship over time.

Use Meta Platforms in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Meta Platforms position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Meta Platforms will appreciate offsetting losses from the drop in the long position's value.

Meta Platforms Pair Trading

Meta Platforms Pair Trading Analysis

The ability to find closely correlated positions to Meta Platforms could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Meta Platforms when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Meta Platforms - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Meta Platforms to buy it.
The correlation of Meta Platforms is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Meta Platforms moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Meta Platforms moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Meta Platforms can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Meta Platforms position

In addition to having Meta Platforms in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Climate Change Thematic Idea Now

Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Climate Change Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any Company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the Meta Platforms information on this page should be used as a complementary analysis to other Meta Platforms' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

Other Consideration for investing in Meta Stock

If you are still planning to invest in Meta Platforms check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Meta Platforms' history and understand the potential risks before investing.
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