Meta Platforms: Ready For Takeoff


  • Meta has been facing strong competition due to the rapid growth of TikTok.
  • We could see TikTok face increasing restrictions or outright bans in US and other important markets due to the challenging geopolitical environment.
  • Meta will gain from any headwind faced by TikTok as it could lead to rapid migration of customers to Reels and also allow faster rollout of monetization.
  • The potential of rapid ad growth on Reels has not been priced in Meta’s stock which should allow further bullish momentum in the next few quarters.
  • Despite the bullish run, Meta stock is still quite cheap compared to Big Tech companies and the company is showing the potential of good revenue and margin growth.

Mobile phone on blue background with shared photo on social media app


Meta (NASDAQ:META) has made a big bet on Reels platform to retain the customers who have moved to TikTok. However, the rapid changes in geopolitical environment could be a bigger tailwind for Reels compared to its own initiatives. The US government

Impact of Reality Labs on total income is less than the decline in advertising revenue.

Company report

Massive growth in TikTok revenue per user in US.


Impact of TikTok's growth of Facebook's platforms.


Facebook's average revenue per user.

Company report

Comparison of PE ratio of Meta, Apple, Microsoft, and Netflix.


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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