Today's video focuses on Meta Platforms (NASDAQ: FB), formerly known as Facebook, and its plans to spend more money building the metaverse. I discuss Meta Platforms' current financial strength and how it intends to invest its assets in future technology. Here are some highlights from the video.
- Meta Platforms is a financially stable company. In the trailing 12 months, it made $112.3 billion in revenue, $40.3 billion in net income, $35.9 billion in free cash flow, and has no long-term debt with over $58 billion in cash and cash equivalents.
- Meta Platforms is hiring numerous engineers to innovate new technologies. The most known product is its Oculus headset used for virtual reality gaming and experiences. Still, Meta Platforms also employs engineers for artificial intelligence, data centers, augmented reality, and other emerging technologies.
- For 2021, Meta Platforms is expected to spend $70 billion-$71 billion in total expenses and $19 billion-$21 billion in capex. By 2022, this will rise dramatically as total expenses are expected to be $91 billion-$97 billion, and capex is expected to be $29 billion-$34 billion.
Click the video below for my full thoughts and analysis.
*Stock prices used were the premarket prices of Jan. 6, 2022. The video was published on Jan. 6, 2022.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jose Najarro owns Alphabet (C shares) and Meta Platforms, Inc. The Motley Fool owns and recommends Alphabet (A shares), Alphabet (C shares), and Meta Platforms, Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
