Meta stock is killing it with a stunning outperformance over FAANG shares and the Nasdaq, thanks to CEO Mark Zuckerberg's 'year of efficiency' push
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Anil Varma
Feb 6, 2023, 17:19 IST
Meta CEO Mark Zuckerberg.Getty Images
Meta has enjoyed a sizzling rally after CEO Mark Zuckerberg said 2023 would a "year of efficiency".
Its stock just delivered its best ever weekly outperformance versus the FAANG group of big techs.
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Facebook parent Meta Platforms' stock is enjoying a spectacular comeback as CEO Mark Zuckerberg ushers in what he calls the "year of efficiency" with a round of cost cuts and share buybacks.
The social media stock just posted its best weekly outperformance on record versus the so-called FAANG group of Big Tech shares that includes itself, according to Insider calculations.
Meta's stock also had its best run in a decade relative to the tech-focused Nasdaq 100 index in the five days through February 3.
The social-media giant soared 23% last week, dwarfing a 6.3% gain for the FAANG group, which also includes Amazon, Apple, Netflix and Google parent Alphabet. The Nasdaq 100 rose by just 3.3%.
Meta stock has surged 55% so far in 2023, after a dismal six-quarter run of losses. It could see more upside as Zuckerberg is "saying what investors want to hear", Deepwater Asset Management partner Gene Munster said last week.
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The social media giant reported its fourth-quarter earnings last week, when it posted a revenue figure of $32.17 billion, beating analysts' forecasts for $31.55 billion. The company also projected its first-quarter revenue at $26-28.5 billion, topping market estimates.
Meta cut its expenses targets for 2023 by an additional $5 billion and said it would repurchase another $40 billion worth of shares from investors. Buybacks tend to be bullish for a stock because they reduce the total supply of shares on the market and show a company's faith in its own business model.
Zuckerberg said 2023 would be a "year of efficiency" as the tech giant tries to cut costs to save up some cash ahead of a potential economic downturn.
"Our management theme for 2023 is the 'year of efficiency', and we're focused on becoming a stronger and more nimble organization," he said.
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