Metaplatforms Inc. META Shares were up 20% late Wednesday after the Mark Zuckerberg-managed company reported a decline in sales and provided inline sales guidance for the first quarter.

Focus back on core products: Meta founder CEO Zuckerberg has shifted focus to core products like roll and Delivery boy, said the co-founder of Deepwater Asset Management Gene Munster. Reality labs and AI will now have enough capital to grow, but not enough to be reckless with profit margins, he added. The fund manager credited Zuckerberg for responding to investor requests.

“I daresay he may have gotten a few clues from watching Tim Cook run Apple,” Munster said.

KeyBanc Sees Short-Term Strength In Stock: Upbeat revisions around spending cuts and Zuckerberg’s renewed focus on efficiency will lead to short-term strength in Meta stocks, analyst at KeyBanc Justin Patterson said.

The analyst noted fourth-quarter revenue of $32.2 billion beat consensus and KeyBanc estimates, and earnings per share came in below expectations at $1.76.

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The number of daily active users of 2 billion has surpassed the consensus of 1.98 billion, he said. The rise in the metric and the rise in Reels likely indicate that CAPEX is trending towards the “Family of Apps”. Reality Labs is a multi-year journey, he added.

Encouraging findings from Meta’s earnings report and management commentary include “reasonably” reduced operating and capital expenditures that reflect a more cost-effective data center architecture for AI and non-AI workloads, Patterson said. He also noted that management has signaled some moderation in capital intensity in future periods.

Citing expectations for a higher user base, slightly better average revenue per user, and cost reductions, Patterson raised its 2023 and 2024 revenue estimates for Meta by 1% each and EPS estimates by 16% and 13%, respectively.

Though encouraged by financial discipline, the analyst said he was…