Giles Coghlan LLB, Lth, MA
Financial Source
Meta has said that new WhatsApp features will begin rolling out across the world over the coming weeks. However, job cuts at Meta have painted a dour picture of growth for the company. In December last year jobs were cut impacting 10K employees and on March 13 Meta announced a fresh round of job cuts with plans to announce a further team size reduction by about 10K. Meta’s CEO Zuckerberg said he expects the current climate of layoffs and restructuring to last for years.
However, Meta also announced total expenses to fall to $86-$92bln vs prior levels of $89-$95 bln and that saw shares gain on the announcement. Will a leaner Meta be poised to still see gains this year?
The seasonals are certainly strong. Over the last 10 years between March 23 and July 25 Meta shares have risen by an average of over 25%. The winning percentage is also 100% and the maximum drawdown is just over 12%. So, is Meta worth buying into this year?
Major trade risks: The major trade risk here is that a hard US recession further weighs on sentiment.
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