- 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.
- The Facebook parent also notched its biggest weekly advance in a decade versus the Nasdaq 100 index.
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.
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.
Meta let go of more than 11,000 employees in November in a round of what Zuckerberg called “last resort” layoffs.