Meta Platforms Stock: more opportunities than risks?

The issues and concerns that have driven Meta stock prices down are well known.

  • Strong growth in staff and costs,
  • content monitoring fees,
  • the construction of the huge Metaverse project, which is associated with uncertainties and which also devours billions,
  • unsatisfactory quarterly figures,
  • higher costs for data protection regulations and
  • macroeconomic pressure.

None of this is new to you either, especially if you’re invested in the social media giant and follow the news accordingly. The stock is down about 65% since the start of the year.

The light at the end of the tunnel?

But the picture seems to be gradually clearing up again. For my part, I think the stock is now past its lows.

And of course I am not the only one in this case. Because, among others, Doug Anmut, an analyst at JP Morgan Chase, recently spoke about Meta Platforms. After the strong price catastrophe, the expert again sees upside potential.

JP Morgan is positive

JP Morgan moved the stock from neutral to overweight. And even significantly increased the price target of the newspaper. The analyst now sees potential for the stock up to $150 instead of $115.

In his view, some of the constraints listed should diminish as we move towards 2023. There are, according to Anmut, “encouraging signs of increasing cost discipline”, and he reports, “there is more to come “.

Meta Platforms’ common stock valuation is now compelling, trading at 12 times its updated 2024 earnings per share estimate of $9.53. According to the expert, an attractive risk/reward ratio at the current price level.

There are many reasons to invest

But there’s a lot to bet on the future of Meta Platforms and Zuckerberg’s plans. To name a few: Apart from the attractive valuation, the fact that Meta together with its subsidiaries has more than 3 billion “customers” worldwide. In other words, no other company can match this number.

On the other hand, Mark Zuckerberg is a visionary and he can certainly be trusted to take the internet to the next level. The Metaverse is a market worth billions, in which there is a lot of potential that you and I may not yet be able to fully imagine.

The brave could still have a lot of fun with the long-term share.

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