![]() Last year’s revenue barely declined, and operating margins stayed strong at 25% as Meta controlled costs amid the slowdown. To add to that, Meta also delivered solid results in 2022 despite the challenging environment. Investors saw the opportunity in a dominant, profitable social media leader. Several factors drove this comeback.įirst, Meta’s valuation became attractive, below 10-times forward earnings after the pullback. Meta has rebounded sharply from last year’s crash that shaved nearly 70% from its value. While not insignificant, other tech stocks likely offer greater return potential.įundamentals Support Meta’s Comeback, But Headwinds Remain On average, Wall Street analysts forecast Meta rising to $376 over the next 12 months, representing 18% upside from today’s levels. That target aligns with Gurufocus’ estimated fair value. So, for the long-term, I see META stock potentially appreciating to more than $400 sometime in 2025, barring a recession. In the near-0term, I won’t speculate on Meta’s price swings, as technical analysis depends heavily on overall market sentiment and does not offer value to long-term investors. If Meta did return cash to shareholders instead of investing heavily in its metaverse vision, a dividend could make it more appealing for long-term investors. Meta does not pay a dividend, unlike many mature tech stocks, and its valuation seems fair based on 2023 estimates. For new investors today, with the stock near $320 per share, I think there are better options in the short-term. However, that call was primarily based on its historically low valuation at the time. This was due to the company’s valuation dipping below $300 billion, making it intriguing. One of my earliest ratings on META stock was a “buy,” back when it was trading around $112 per share last year. While I share some of those concerns over the near-term, I believe META stock is a “hold” at current levels for most investors. That’s especially the case if broader market sentiment turns more bearish. After the stock’s sharp ascent, some investors are wondering whether this rally has been overdone, and if this stock is due for a pullback. Meta Platforms (NASDAQ: META) has staged an impressive comeback from its lows last year, gaining over 250% to climb back above the $300 level. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
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