Facebook is known to the mass audience as one of the most widely-used social networks. This platform was launched in 2004 by the American developer and entrepreneur Mark Zuckerberg. Eventually, it has grown into a big international corporation, which is now known under the brand name Meta. Today, the company operates not only on Facebook but other social platforms such as Instagram, Oculus, Messenger, WhatsApp, and others.
Facebook is now considered something more than an ordinary social network. It’s a powerful media instrument and an influential brand that stands out from the crowd. When we consider all the things about Facebook, can we say that FB stock is a worthy investment in 2022? Is this still an innovative and dominant project? Let’s find this out by taking a look at its financial performance, events that impacted stock quote changes, and more.
Performance of the Company
In 2021, Meta Platform reported annual revenue of $117.929 billion. This is a significant increase, compared to the year before and its total revenue of around $84 billion. This makes Meta one of the best-performing participants in the market of Big Tech companies.
The rebranding to Meta is related to the desire of the company to promote and develop the Metaverse concept. The corporation has even created a separate division for this called Reality Labs. It is reported that this division generated more than $600 million. The share of the revenue from social platforms is quite significant as well – $32.79 billion.
The net income of the company has also increased significantly compared to 2020. The previous year, Meta reported making $39.370 billion of net income, while in 2020, this amount didn’t exceed $30 billion. The successful financial of the company brought investors $13.99 per share.
Key Events
- Facebook got traded publicly in 2021. In the beginning, the price of Facebook stock started at around $332 per share. A month after the IPO of the company took place, the Facebook stock price increased up to $370. In September 2021, the FB stock reached its maximum – $378.38 per share.
- In October 2021, the rebranding of Facebook into Meta Platforms Inc. took place. To make this rebranding, the management decided to allocate an additional $50 million in September 2021. After this, the FB stock price started falling down. At the end of 2021, FB stock was closing at around $338.
- At the beginning of 2022, the FB stock faced the biggest price crash in its history. In a single day, the prices dropped by 25%. Because of this, the company lost more than $200 billion. This happened because of the unsatisfying earnings report.
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When trading and investing with the DotBig company, every client is completely protected. His or her funds are stored in separate segregated accounts of the best European banks so that no one can approach them. The DotBig forex broker is a multi-asset financial services provider. With it, you can create a diversified portfolio of best-performing stocks. Plus, there is a possibility to show a better performance with the assistance of the company’s specialists.
Pros
- Facebook, and now Meta Platforms Inc., is still one of the market leaders. It makes a great impact on how the industry of information technology is developing.
- The company is committed to the idea of the meta-universe. We have enough pieces of evidence to consider that this idea will be successfully implemented and will bring more profits in the future.
- The revenue of the company is expected to grow in 2022. At the beginning of the year, the company’s analytical department forecasted that the growth will reach from 3% to 11%.
- The valuation of the FB stock is quite reasonable. The company is making tons of money but its stock is traded at around $190-200. This is a very low entry point for investors.
Cons
- FB stock is a very volatile financial product as of today. The sharp changes in quotes might be not very satisfying for investors, looking for rather stable instruments.
- According to the recent earning report released by the company, it cannot reach the bar of planned earnings.
Final Thoughts
Whatever your choice will be, you must understand that it’s only your choice and only your responsibility to invest in FB stock or not. On the one hand, it’s now a good time to buy a share in one of the biggest information technology companies. On the other hand, the volatility of the stock and poor earnings at the start of 2022 make the asset less promising for this year.
