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Meta Platforms Inc Class A FB

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Morningstar’s Analysis

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PREMIUM

Facebook Is Now Meta Platforms; Wide-Moat Rating and $404 FVE Remain; Shares Are Attractive

Ali Mogharabi Senior Equity Analyst

Analyst Note

| Ali Mogharabi |

On Oct. 28, Facebook changed its name to Meta Platforms, as it will focus more on investing in innovation for the long run, mainly in augmented and virtual reality. Meta will consist of two business segments: family of apps, which includes Facebook, Instagram, WhatsApp, and Messenger, and reality labs, which drive the firm’s long-term metaverse strategy with augmented and virtual reality hardware and software. Beginning on Dec. 1, Meta’s stock will begin trading under the ticker MVRS.

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Company Profile

Business Description

Meta Platforms Inc, formerly Facebook is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other by exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. Its ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Facebook operates at a 30%-plus margin.

Contact
1601 Willow Road
Menlo Park, CA, 94025
T +1 650 543-4800
Sector Communication Services
Industry Internet Content & Information
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Aggressive Growth
Employees 68,177

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