Meta is a growth stock, and growth stocks are the first to be slaughtered in the current economic environment where inflation is soaring and the recession is around the corner. Nevertheless, the company has several advantages that should help it to thrive in the long run. First of all, it has no real competitors in the social media space, as it takes a long time if ever for its peers to achieve the same user metrics performance that Meta has. At the same time, the company has no exposure to China unlike its big tech peer Apple, so in case of some sort of a trade war, its business won’t be affected whatsoever. In addition, while the advertising business is likely going to be negatively affected if the economic data worsens, in the long run, advertisers are not going to disappear and will return once the dust settles down. Once it happens, Meta would be one of the first companies to significantly benefit from this.
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