$META Earnings
$META's guide is not good, but it is not nearly as bad when you account for the 6% FX headwind.

$META's headcount is a lever they can pull back on at any time to increase margins. Not sure why they felt the need to ramp headcount.

Despite the narrative that Tik Tok is crushing $META, engagement was strong (even on FB Blue).

Also, good to see $META pull back on their expense guide. What can you do with $90bn that you can't do with $87bn?

Joshua Simka's avatar
What's Facebook Blue? Not a terrible quarter for $META but all the spending gives me some pause. This is an advertising business still. As a long term investor I'm less concerned about something like effects of FX.
Young Money Capital's avatar
@tomato fb original
Conor Mac's avatar
Headcount is wild, but otherwise not a horrible quarter. Not an amazing one either.
Young Money Capital's avatar
@investmenttalk I saw later that a lot of the headcount is due to base effects but still it’s high
Reasonable Yield's avatar
I think the market was expected A LOT worse.
Rihard Jarc's avatar
I think $META needs to not just freeze hiring but also make some layoffs...the shift they are doing will take some time and profits need to be stable.
Young Money Capital's avatar
@rihardjarc agreed. There is no way they need that many people
Rihard Jarc's avatar
@youngmoneycapital Yeah, too much people in a short time is never good. Probably a lot of them do not know what they are doing even exactly. And also I want them to keep investing in data centers and AI and rather save costs where there is overcapacity of labor and be more effective.