Ssimsim
2022-06-27

Meta Platforms: Betting on Its Innovative DNA


Meta Platforms, Inc.

+0.17%

META stock experienced a decline in value due to high inflation and regulatory headwinds. However, the market’s expectations are so low that a few improvements in its business should boost the stock price. Meta’s growth prospects and value are too important to ignore.

Meta Platforms (META), the tech giant formerly known as Facebook, made a surprising recovery after releasing its earnings report in April, sending its shares up 13%. Unfortunately, the stock has plummeted by more than 55% from last year’s trillion-dollar peak. Despite this, I am bullish on META stock.

Its first-quarter earnings showed a recovery in daily active users for Facebook, comfortably beating analyst estimates. Considering the company’s positive quarterly results, robust social media business, and the potential of the metaverse, Meta makes a safe long-term investment at its current valuation.

Unluckily, META stock shed much of its market value because investors seemed to be concerned over the company’s declining growth. Moreover, its foray into the relatively unknown in the metaverse concerns investors. However, it has managed to stay 340% above its IPO from 10 years ago. This factor says a lot about the stock’s potential to increase value and reward its holders.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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