Meta Platforms Inc - Ordinary Shares - Class A

Fundamentals

PREFACE
Facebook crushed earnings last night after the close and the stock is riding high, spiking up 16%, which represents one of the single largest one day gains in market cap in the history of financial markets.


STORY
Facebook beat or met every consensus estimate set by Wall Street from revenue and EPS, to monthly and daily active users. We'll leave the actual results out -- they are available anywhere. This is not a news article, this is a research piece. The top 1% have this information, now it's time everyone else does too.

CHINA
As of yet, Facebook has no users in China even though it has 1.59 billion monthly average users and growing. But, the company is making inroads to enter the country. Further, in the CML Pro research dossier, we discuss how Facebook will reach another 3 billion people by delivering the Internet through solar powered drones.



REVENUE per USER
Average Revenue per User (ARPU) rose a staggering 26% to $3.73 (re/code). This is a critical measure, because, at some point, user growth will slow, so the growth story turns to increased monetization of the user base.

VIDEO
Online video advertising is the new battlefield. Spending in the U.S. will hit $9.1 billion in 2016, up from $4.4 billion just two years ago.

Facebook and Google are at war, openly. Google has 175 million unique video viewers across all Google Sites in just the U.S. alone. Facebook has 90 million. Here's a chart from Statista:



Mark Zuckerberg disclosed that 100 million hours of video are watched daily on Facebook. That compares to Google's YouTube number that is between 500 million and 650 million. So, unbelievably, there is a lot of room for yet more growth.

In our research dossier "Facebook Is Going for The Kill Shot on Twitter Right Now," we discuss in detail the two new tracks Facebook is following for real-time communiques. First, Facebook introduced Live Video and Collages in December of 2015:


Then, on January 21st, bigger news was released:


The company is openly considering giving video its own location on the Facebook platform for people who just want to watch videos and Mark Zuckerberg was pretty clearly pushing the new initiatives. The company revealed that 500 million people are watching video on the platform each day.

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WHATS APP
The messaging service crossed one billion MAUs. Facebook cut the $1 a year fee but Mark Zuckerberg continued to say that the business is monetizable and that companies are now advertising on it.

In the full Facebook CML Pro research dossier, "Our Trip to India and Facebook's Impossible Dream", we discuss how WhatsApp may end up being larger than Facebook proper itself. This a totally different type of social media and has the power to connect the world and to double Facebook's reach and here's how:

Get the full research report on CML Pro.

FACEBOOK MESSENGER AND PAY
Facebook Messenger crossed 800 million MAUs. That portion of the business is focusing on mobile pay.

The company did reveal that revenue fro Payments in Messenger actually dropped 21% year-over-year but Facebook has loaded management with former PayPal executives (Source: TechCrunch.)

Further, Zuckerberg said:


The idea is that mobile pay will push the amount businesses are willing to spend on Messenger. We have an entire CML Pro dossier dedicated to mobile pay: You can read it on CML Pro. Here's a taste:

Here's the chart of global mobile payment transaction volume from Statista, forecasting out to 2017. This is in billions of dollars.



Bank of America expects this market to hit $3 trillion by 2022.

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INSTAGRAM
The process of monetizing Instagram has already begun. The service has at least 400 million MAUs. In a stunning proclamation, Sheryl Sandberg said that 98 of Facebook's top 100 advertisers also advertised on Instagram in Q4.

Sandberg also said that the Sutterfly campaign which spans across Facebook and Instagram and is targeted specifically to women with specific interests saw a 6.4x return on ad spend.

OCULUS
Mark Zuckerbeg said: "I am happy. I don't show much joy, but I am happy," with respect to the virtual reality (VR) hardware and app.

Facebook has its sights set on the way we consume all gaming and media, especially movies and television. But the hardware isn't the crown jewel, its Facebook's app that goes with it.

This is why the upside for Oculus is impossible large -- spanning all of humanity per the analysis of Dave Thier at Forbes: You can get the full research dossier on CML Pro (end of this article).

WHY THIS MATTERS
If any of the information we just covered feels like a surprise, in many ways it is. The mainstream media doesn't have the vocabulary to understand breaking technology and the top analysts that represent the wealthiest 1% of Americans have no interest in sharing the data they are keenly aware of.

CML Pro research points to exactly what Facebook is doing. For example, did you know that Facebook spends more in research and development (R&D) per dollar of revenue than all other mega cap technology companies? Here's the chart:



This is just a snippet of the fantastic reports CML Pro members get along with all the visual tools, the precious few top picks for 2016 that cover all of the rule breaking segments of our future, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.

Thanks for reading, friends.