Meta Platforms: Worth A Look On Recent Volatility (Ratings Upgrade)

Summary:

  • Interest-rate fears have affected tech stocks, including Meta Platforms (parent company of Facebook), but it may be a good time to consider a new position.
  • Meta’s dominance in the social media space, room for growth in users and engagement, and immense profitability are strong upside catalysts, but ad market trends remain uncertain.
  • The company is managing to deliver 20%+ EPS growth due to a double-digit reduction in headcount. Revenue is also being held up by strong increases in ad impressions.
  • At an 18x FY24 EPS multiple, Meta is neither cheap nor expensive; so it’s best to watch and wait from the sidelines.

Social media app mockups for user profile, gallery and single photo views

grinvalds

Interest-rate fears since the start of June have sapped a lot of YTD gains and momentum for many tech stocks, including Meta Platforms (NASDAQ:META), the parent company behind Facebook. It may be a good time to use the volatility


Analyst’s 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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