A look at the year-to-date performance of the world’s leading technology stocks tells an interesting story. In case you ever wondered whether the US market efficiently prices stocks, the 2023 return of 93% in Meta Platforms should put that thought to bed once and for all. Even in the most liquid and widely followed market in the world, there is money to be made.There’s a strong base effect in Meta, of course.
The change in narrative at Meta is stark. In the most recent earnings call, the Zuck barely made it through the user stats before jumping into the “efficiency work” at Meta. Watching the share price fall through the floor has clearly spurred tech management teams into action and forced them to reprioritise their efforts towards profitability. In these companies, the way to cut costs quickly is to reduce the number of staff.