Meta Platforms: Take Some Profit Amid DOJ-Google Antitrust Trial (Downgrade)

Summary:

  • I have been a long-term bull for Meta Platforms, Inc.
  • My bull thesis was really simple: the value of its social platforms and its AI potential were mispriced.
  • However, recent developments made me change my ratings to a HOLD.
  • The top concerns involved in this downgrade are the implications of the DOJ-Google antitrust trial, profitability headwinds ahead, and also expanded valuation.
  • Its P/E is on the cheaper end among major AI stocks, but the lack of immediate catalysts limits its return potential in the next few years.

A law book with a gavel - Antitrust law

Zerbor

META: Take Some profit at near-record prices

Readers following my articles know that I have been arguing a bullish case for Meta Platforms, Inc. (NASDAQ:META) in the past ~2 years or so. My bullish argument was really simple: the


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