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Meta Platforms Soars, Return to Growth: ETFs to Tap
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After the closing bell on Apr 27, Meta Platforms spread optimism following robust first-quarter 2022 results. The social media giant returned to growth after the first-ever decline in the December quarter and beat earnings estimates. This has overshadowed the company’s revenue miss and the slowest revenue growth since going public.
As such, FB shares surged more than 19% in aftermarket hours on elevated volume. This has put focus on ETFs — Communication Services Select Sector SPDR Fund (XLC - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) , iShares Global Comm Services ETF (IXP - Free Report) and UPHOLDINGS Compound Kings ETF (KNGS - Free Report) — with a substantial allocation to this social media giant.
Earnings in Focus
Adjusted earnings per share came in at $2.72, outpacing the Zacks Consensus Estimate of $2.54 but declining 18% from the year-ago earnings. Revenues climbed 6.6% year over year to $27.9 billion and fell short of the estimated $28.2 billion. This marks the Facebook parent Meta’s slowest revenue growth since going public (read: 5 Top Tech Areas That Deserve Your Attention Now).
Meta Platforms’ global daily active users increased 4% year over year to 1.96 billion. Monthly active users grew 3% year over year each to 2.94 billion. The company stated that about 3.64 billion people use Facebook, WhatsApp, Instagram or Messenger (Family of services) each month, and about 2.87 billion people use at least one of the Family of services every day, on average.
The world’s largest social media platform expects revenues in the range of $28-$30 billion for the second quarter. The lower range is well above the Zacks Consensus Estimate of $28.2 billion.
ETFs in Focus
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $10.3 billion in its asset base. It follows the Communication Services Select Sector Index and holds 26 stocks in its basket, with Meta Platforms occupying the top position at 18%. About 46% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two (see: all the Communication ETFs here).
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 6.3 million shares. It has a Zacks ETF Rank #3 (Hold).
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 114 stocks in its basket, with Meta Platforms occupying the top position at 13.5%. Interactive media & services takes the top spot at 44%, while entertainment, media, and diversified telecommunication services round off the next three positions.
Fidelity MSCI Communication Services Index ETF has amassed $640.3 million in its asset base and trades in an average daily volume of 102,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Vanguard Communication Services ETF also targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 108 stocks in its basket, Meta Platform takes the top spot with a 13.3% share. Interactive media & services is the top sector, accounting for 44% of the portfolio while movies & entertainment, and cable & satellite round off the next two (read: What Lies Ahead for Big Tech ETFs in Q1 Earnings?).
Vanguard Communication Services ETF has AUM of $3.4 billion and trades in a good volume of 305,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 73 stocks in its basket, with Meta Platforms taking the second spot at 10.9% share. Interactive media & services dominates the fund’s return at 44.3%, followed by integrated telecommunication services (20.1%).
iShares Global Comm Services ETF has amassed $206.5 million in its asset base while trading at an average daily volume of 143,000 shares. The expense ratio comes in at 0.43%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook.
UPHOLDINGS Compound Kings ETF is actively managed and seeks long-term growth and income primarily by investing in compounders: companies with the potential to reinvest their own cash flow at above-average rates of return. It holds 26 stocks in its basket, with Meta Platforms taking the top spot with 11.4% of assets.
UPHOLDINGS Compound Kings ETF has accumulated $8.3 million in its asset base and charges 60 bps on an annual basis. It trades in a volume of 2,000 shares per day on average.
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Meta Platforms Soars, Return to Growth: ETFs to Tap
After the closing bell on Apr 27, Meta Platforms spread optimism following robust first-quarter 2022 results. The social media giant returned to growth after the first-ever decline in the December quarter and beat earnings estimates. This has overshadowed the company’s revenue miss and the slowest revenue growth since going public.
As such, FB shares surged more than 19% in aftermarket hours on elevated volume. This has put focus on ETFs — Communication Services Select Sector SPDR Fund (XLC - Free Report) , Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) , Vanguard Communication Services ETF (VOX - Free Report) , iShares Global Comm Services ETF (IXP - Free Report) and UPHOLDINGS Compound Kings ETF (KNGS - Free Report) — with a substantial allocation to this social media giant.
Earnings in Focus
Adjusted earnings per share came in at $2.72, outpacing the Zacks Consensus Estimate of $2.54 but declining 18% from the year-ago earnings. Revenues climbed 6.6% year over year to $27.9 billion and fell short of the estimated $28.2 billion. This marks the Facebook parent Meta’s slowest revenue growth since going public (read: 5 Top Tech Areas That Deserve Your Attention Now).
Meta Platforms’ global daily active users increased 4% year over year to 1.96 billion. Monthly active users grew 3% year over year each to 2.94 billion. The company stated that about 3.64 billion people use Facebook, WhatsApp, Instagram or Messenger (Family of services) each month, and about 2.87 billion people use at least one of the Family of services every day, on average.
The world’s largest social media platform expects revenues in the range of $28-$30 billion for the second quarter. The lower range is well above the Zacks Consensus Estimate of $28.2 billion.
ETFs in Focus
Communication Services Select Sector SPDR Fund (XLC - Free Report)
Communication Services Select Sector SPDR Fund offers exposure to companies from telecommunication services, media, entertainment and interactive media & services, and has accumulated $10.3 billion in its asset base. It follows the Communication Services Select Sector Index and holds 26 stocks in its basket, with Meta Platforms occupying the top position at 18%. About 46% of the portfolio is allocated to interactive media & services, while entertainment and media round off the next two (see: all the Communication ETFs here).
Communication Services Select Sector SPDR Fund charges 10 bps in annual fees and trades in an average daily volume of 6.3 million shares. It has a Zacks ETF Rank #3 (Hold).
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report)
Fidelity MSCI Communication Services Index ETF follows the MSCI USA IMI Communication Services 25/50 Index. It holds 114 stocks in its basket, with Meta Platforms occupying the top position at 13.5%. Interactive media & services takes the top spot at 44%, while entertainment, media, and diversified telecommunication services round off the next three positions.
Fidelity MSCI Communication Services Index ETF has amassed $640.3 million in its asset base and trades in an average daily volume of 102,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF also targets the communication sector by tracking the MSCI US Investable Market Communication Services 25/50 Index. Holding 108 stocks in its basket, Meta Platform takes the top spot with a 13.3% share. Interactive media & services is the top sector, accounting for 44% of the portfolio while movies & entertainment, and cable & satellite round off the next two (read: What Lies Ahead for Big Tech ETFs in Q1 Earnings?).
Vanguard Communication Services ETF has AUM of $3.4 billion and trades in a good volume of 305,000 shares a day, on average. It charges 10 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
iShares Global Comm Services ETF (IXP - Free Report)
iShares Global Comm Services ETF provides global exposure to companies in media, entertainment, social media, search engine, video/gaming and telecommunication services by tracking the S&P Global 1200 Communication Services 4.5/22.5/45 Capped Index. It holds 73 stocks in its basket, with Meta Platforms taking the second spot at 10.9% share. Interactive media & services dominates the fund’s return at 44.3%, followed by integrated telecommunication services (20.1%).
iShares Global Comm Services ETF has amassed $206.5 million in its asset base while trading at an average daily volume of 143,000 shares. The expense ratio comes in at 0.43%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook.
UPHOLDINGS Compound Kings ETF (KNGS - Free Report)
UPHOLDINGS Compound Kings ETF is actively managed and seeks long-term growth and income primarily by investing in compounders: companies with the potential to reinvest their own cash flow at above-average rates of return. It holds 26 stocks in its basket, with Meta Platforms taking the top spot with 11.4% of assets.
UPHOLDINGS Compound Kings ETF has accumulated $8.3 million in its asset base and charges 60 bps on an annual basis. It trades in a volume of 2,000 shares per day on average.