Meta's financial report and falling view:

Meta's financial report was released in the early morning, and the overall situation was good. Whether it was revenue, expenditure, or even cost and profit, it performed well among technology companies. At the same time, as a light-asset company, compared with Tesla's labor costs and profit results, it was even more powerful. However, it fell at the closing stage. Why?

First, although Meta disclosed in the financial report that the operating conditions in the first quarter were good and in line with expectations, it may not meet the expectations of traders in the market. You must know that in the risk market, many retail investors have extremely high valuations for companies, and they are higher than a large part of the share, similar to FOMO. This over-valuation is inconsistent with the valuation after the financial report is released, which will cause disappointment and sell-offs. After all, Meta's stock price has risen by 36% in 24 years, which is the highest among the seven US technology giants.

Second, the chief financial officer's cautious outlook and risk warning for the future. After the financial report was disclosed, Meta's chief financial officer proposed an upward adjustment of the total expenditure forecast for 2024, which also brought greater risks to operating losses. Reasonable risk reminders, lower market expectations, and effectively cool down Meta will help the financial report pressure in the next quarter, and also prevent Meta from being too big in the short term.

Third, under the premise of good corporate profitability, employment has decreased. A year-on-year decrease of 10%, that is, part of the profit in the first quarter of the financial report came from the reduction of personnel expenses. Although the 10% reduction in personnel shows the streamlined and efficient team of Meta, it also brings concerns about the actual operating situation and the future. According to conventional thinking, if the company is profitable and operating well, it should expand capacity, open up venues, and increase personnel to bring better development and benefits. However, under the premise of good financial reports, the staff has been significantly reduced again, and the situation in terms of labor is also worrying.

Fourth, Meta's current main revenue comes from advertising. Although the advertising revenue in the first quarter was good, Meta will increase its investment in AI this year. Although the route is right, it also increases people's vigilance against Meta's own potential risks.

The decline after the release of Meta's financial report was an emotional decline. Under the premise of extremely high expectations and Meta's own active lowering of market expectations, the decline was inevitable, but this decline was not disgusting. In front of a company that is currently profitable, you can lower expectations, but you cannot have a more pessimistic reason.As for Meta's stock price, there must be a short-term oversold rebound after a short-term decline.
#大盘走势