Motley Fool Money Meta Misses, Shopify Stabilizes
Oct 27, 2022
Andy Cross, Chief Investment Officer, shares his insights on the troubling financials of Meta Platforms, particularly its skyrocketing R&D costs and operating margins. He discusses Shopify's surprising revenue uptick despite market challenges. Scott Ford, CEO of WestRock, reveals how their coffee company is serving 20 million cups daily while focusing on social responsibility and supporting local farmers through a transparent supply chain. Both guests provide a fresh look at the ever-evolving landscapes of tech and consumer goods.
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Meta's Metaverse Investment Impact
- Meta's operating margin dropped to 20%, its lowest in years, due to heavy metaverse investment.
- Their R&D spending reached a record 33% of revenue, raising concerns about core business neglect.
Shopify's Rebound and Lingering Concerns
- Shopify's stock rebounded 18% after exceeding Q3 expectations, partially due to low prior expectations.
- Despite returning growth, concerns remain about their profitability and heavy investments in fulfillment.
Comcast's Steady Performance & Minions Success
- Comcast exceeded Q3 expectations despite tough comparisons to the previous year, which included the Olympics.
- Their theme park revenue soared by 42%, and the Minions franchise proved highly profitable.