Meta Platforms: Wait Until It Dips Again


  • Shares of Facebook parent company Meta have skyrocketed more than 40% this year.
  • Revenue growth has turned negative amid a very challenging advertising market, hamstrung by the tightening macroeconomy.
  • Meta is turning its focus to cost, and has lowered its total cost guidance to $89-$95 billion from a prior view of $94-$100 billion. This still implies y/y growth.
  • Trading at a ~19x forward P/E multiple, Meta is no longer cheap. The stock should see volatility this year and create a cheaper buying window.
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I’ll cut to the chase here: I’ve enjoyed the sharp rebound in Meta Platforms (NASDAQ:META) stock since the start of the year, and it’s refreshing to not have the market be completely doom-and-gloom on all tech names. But in my view, META

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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