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Meta Soars on Solid Q4 Earnings, First Dividend: ETFs to Buy
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After the closing bell on Feb 1, Facebook’s parent company, Meta Platforms (META - Free Report) , reported better-than-expected fourth-quarter 2023 results, beating on both the top and bottom lines. The social media giant also declared its first-ever dividend, boosting huge investors’ confidence in the company’s growth.
META shares spiked as much as 14% to a record high of $451 in aftermarket hours, pushing its market capitalization by $148 billion to $1.16 trillion. Investors should buy ETFs having a large allocation to this social media giant to tap the opportune moment. These include 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 Global X Social Media Index ETF (SOCL - Free Report) .
Earnings in Focus
Adjusted earnings per share came in at $5.33, topping the Zacks Consensus Estimate of $4.83 and increasing 203% from the year-ago quarter. Revenues grew 25% year over year to a record $40.1 billion and came above the estimated $38.99 billion. This marks the company’s highest quarterly sales number since mid-2021. The robust performance was driven by a rebound in digital advertising and cost-cutting measures (read: Tech Leads S&P 500 to Highs: Does Further Rally Await ETFs?).
Meta Platforms’ global daily active users increased 6% year over year to 2.11 billion. Monthly active users grew 3% year over year to 3.07 billion. The company stated that about 3.19 billion people used at least one of the Family of services (Facebook, WhatsApp, Instagram or Messenger) every day, on average, as of December.
The world’s largest social media platform expects to post revenues in the range of $34.5-$37 billion for the first quarter. The Zacks Consensus Estimate is pegged at $33.76 billion.
Meta has announced its first-ever cash dividend of 50 cents per share to be paid out on Mar 26 to shareholders of record as of Feb 22. It also announced an expanded $50 billion share buyback program to boost value for shareholders further.
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 $17.1 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket, with Meta Platforms occupying the top position at 24.9% share. About 48.4% 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 9 bps in annual fees and trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #2 (Buy).
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 111 stocks in its basket, with Meta Platforms occupying the top position at 21.8%.
Fidelity MSCI Communication Services Index ETF has amassed $956.8 million in its asset base and trades in an average daily volume of 129,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 (Hold) 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 118 stocks in its basket, Meta Platform takes the top spot with a 21.8% share. Interactive media & services is the top sector, accounting for 50% of the portfolio, while movies & entertainment, cable & satellite, and integrated telecommunication services round off the next three.
Vanguard Communication Services ETF has AUM of $3.8 billion and trades in a good volume of 147,000 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 65 stocks in its basket, with Meta Platforms taking the top spot at 21.1% share. Interactive media & services dominates the fund’s return at 50%, followed by integrated telecommunication services (18.3%).
iShares Global Comm Services ETF has amassed $254.5 million in its asset base while trading at an average daily volume of 10,000 shares. The expense ratio is 0.42%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook (read: Meta at Record-High: What Lies Ahead of ETFs?).
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $157.5 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 44 securities in the basket. Meta Platforms occupies the second position with 11.3% of the assets.
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 14,000 shares a day. The fund has a Zacks ETF Rank #3 with a High risk outlook.
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Meta Soars on Solid Q4 Earnings, First Dividend: ETFs to Buy
After the closing bell on Feb 1, Facebook’s parent company, Meta Platforms (META - Free Report) , reported better-than-expected fourth-quarter 2023 results, beating on both the top and bottom lines. The social media giant also declared its first-ever dividend, boosting huge investors’ confidence in the company’s growth.
META shares spiked as much as 14% to a record high of $451 in aftermarket hours, pushing its market capitalization by $148 billion to $1.16 trillion. Investors should buy ETFs having a large allocation to this social media giant to tap the opportune moment. These include 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 Global X Social Media Index ETF (SOCL - Free Report) .
Earnings in Focus
Adjusted earnings per share came in at $5.33, topping the Zacks Consensus Estimate of $4.83 and increasing 203% from the year-ago quarter. Revenues grew 25% year over year to a record $40.1 billion and came above the estimated $38.99 billion. This marks the company’s highest quarterly sales number since mid-2021. The robust performance was driven by a rebound in digital advertising and cost-cutting measures (read: Tech Leads S&P 500 to Highs: Does Further Rally Await ETFs?).
Meta Platforms’ global daily active users increased 6% year over year to 2.11 billion. Monthly active users grew 3% year over year to 3.07 billion. The company stated that about 3.19 billion people used at least one of the Family of services (Facebook, WhatsApp, Instagram or Messenger) every day, on average, as of December.
The world’s largest social media platform expects to post revenues in the range of $34.5-$37 billion for the first quarter. The Zacks Consensus Estimate is pegged at $33.76 billion.
Meta has announced its first-ever cash dividend of 50 cents per share to be paid out on Mar 26 to shareholders of record as of Feb 22. It also announced an expanded $50 billion share buyback program to boost value for shareholders further.
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 $17.1 billion in its asset base. It follows the Communication Services Select Sector Index and holds 22 stocks in its basket, with Meta Platforms occupying the top position at 24.9% share. About 48.4% 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 9 bps in annual fees and trades in an average daily volume of 6 million shares. It has a Zacks ETF Rank #2 (Buy).
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 111 stocks in its basket, with Meta Platforms occupying the top position at 21.8%.
Fidelity MSCI Communication Services Index ETF has amassed $956.8 million in its asset base and trades in an average daily volume of 129,000 shares. It charges 8 bps in annual fees and has a Zacks ETF Rank #3 (Hold) 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 118 stocks in its basket, Meta Platform takes the top spot with a 21.8% share. Interactive media & services is the top sector, accounting for 50% of the portfolio, while movies & entertainment, cable & satellite, and integrated telecommunication services round off the next three.
Vanguard Communication Services ETF has AUM of $3.8 billion and trades in a good volume of 147,000 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 65 stocks in its basket, with Meta Platforms taking the top spot at 21.1% share. Interactive media & services dominates the fund’s return at 50%, followed by integrated telecommunication services (18.3%).
iShares Global Comm Services ETF has amassed $254.5 million in its asset base while trading at an average daily volume of 10,000 shares. The expense ratio is 0.42%. IXP has a Zacks ETF Rank #3 with a Medium risk outlook (read: Meta at Record-High: What Lies Ahead of ETFs?).
Global X Social Media Index ETF (SOCL - Free Report)
Global X Social Media Index ETF provides investors access to social media companies around the world and has amassed $157.5 million in its asset base. It tracks the Solactive Social Media Total Return Index, holding 44 securities in the basket. Meta Platforms occupies the second position with 11.3% of the assets.
Global X Social Media Index ETF charges 0.65% in annual fees and sees lower trading volumes of roughly 14,000 shares a day. The fund has a Zacks ETF Rank #3 with a High risk outlook.