Jefferies’ Thill on Meta Platforms: ‘long term they’re in a good spot’

0

Jefferies’ Thill on Meta Platforms: ‘long term they’re in a good spot’

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
Jun 9, 2022

Brent Thill makes a bull case for Meta Platforms on CNBC’s “TechCheck”.

He attributes part of the risk-off in the tech giant to macro environment.

Shares of the company formerly known as Facebook are down 45% YTD.

Shares of Meta Platforms Inc (NASDAQ: META) continue to dwell under $200, but Jefferies Brent Thill is convinced the mega-cap is a great pick for the long-term investors.

Thill’s remarks on CNBC’s ‘TechCheck’

Thill agrees the company formerly known as Facebook is struggling with challenges in the near-term, but says the outlook for the longer term remains constructive. On CNBC’s “TechCheck”, he noted:


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Long term, Meta is capable of $15 of earnings power. Stock’s trading at 14-15 times earnings. If it gets a 20 multiple on a $15 earnings power, you’re at $300 a share. So, it doesn’t take that much to get there. Long term, they’re in a good spot.

Other reasons why he remains positive on Meta Platforms include a healthy cash flow and a $50 billion share repurchase programme.

Thill blames macro environment for the sell-off

Thill doesn’t attribute the risk-off in Facebook entirely to the company-specific issues. Some of it, he said, were related to the macro headwinds as well.

It’s little clouded by the overall macro picture. Remember this is an entirely ad-driven model. Advertising models see a downturn; that’s the first thing you can turn off in a slowing macro environment.

Last week, Sheryl Sandberg announced her departure from Facebook – a key executive that turned the Nasdaq-listed company into an advertising behemoth. Meta topped Wall Street estimates for profit in its latest reported quarter.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
Capital.com

9.3/10

75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Visit site

Industries


North America


Stocks & Shares


Technology


USA


World

Generated by Feedzy