Balance Sheet Shock Hits Growth Machine! Why Meta's Setback is an Entry Opportunity!
The EPS shock is accounting-related due to a one-time tax effect and not fundamentally justified. Operationally, Meta surpassed the benchmark.
Reading Time: 2 minutes
At first glance, Meta Platforms' (META) numbers look like a misstep. With earnings per share of $1.05, it falls far short of expectations of $6.69. A margin compression from 43% to 40% caused the stock to drop nearly 9% in after-hours trading. However, those who only stare at the headlines miss the core message. The weak earnings are almost entirely the result of a one-time, non-cash tax burden of $15.93 billion. Without this special factor, the EPS would be around $7.25. Therefore, the shock was balance sheet-related and not operational. In the...
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