Meta Platforms Q3: Significant Near-Term Downside Volatility Is Likely
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Meta Platforms reported strong Q3 results, beating EPS and revenue expectations, and daily users increased by 5% year-over-year. However, concerns arise due to its high enterprise value and a significant loss in its Reality Labs division. The company's intrinsic value is estimated to be lower than its current market value, suggesting potential downside volatility.
November 11, 2024 | 3:30 am
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Meta Platforms reported strong Q3 results, but its high enterprise value and losses in Reality Labs suggest potential downside volatility. The intrinsic value is estimated to be lower than the current market value.
Despite beating Q3 EPS and revenue expectations, Meta's enterprise value is considered too high with a negative margin of safety. The Reality Labs division reported a significant loss, which could pose long-term risks. The intrinsic enterprise value is estimated to be lower than the current market value, indicating potential downside volatility in the short term.
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RELEVANCE 100