Last year’s revenue barely declined, and operating margins stayed strong at 25% as Meta controlled costs amid the slowdown. To add to that, Meta also delivered solid results in 2022 despite the challenging environment. Investors saw the opportunity in a dominant, profitable social media leader. Several factors drove this comeback.įirst, Meta’s valuation became attractive, below 10-times forward earnings after the pullback. Meta has rebounded sharply from last year’s crash that shaved nearly 70% from its value. While not insignificant, other tech stocks likely offer greater return potential.įundamentals Support Meta’s Comeback, But Headwinds Remain On average, Wall Street analysts forecast Meta rising to $376 over the next 12 months, representing 18% upside from today’s levels. That target aligns with Gurufocus’ estimated fair value. ![]() So, for the long-term, I see META stock potentially appreciating to more than $400 sometime in 2025, barring a recession. In the near-0term, I won’t speculate on Meta’s price swings, as technical analysis depends heavily on overall market sentiment and does not offer value to long-term investors. If Meta did return cash to shareholders instead of investing heavily in its metaverse vision, a dividend could make it more appealing for long-term investors. Meta does not pay a dividend, unlike many mature tech stocks, and its valuation seems fair based on 2023 estimates. For new investors today, with the stock near $320 per share, I think there are better options in the short-term. However, that call was primarily based on its historically low valuation at the time. This was due to the company’s valuation dipping below $300 billion, making it intriguing. One of my earliest ratings on META stock was a “buy,” back when it was trading around $112 per share last year. ![]() While I share some of those concerns over the near-term, I believe META stock is a “hold” at current levels for most investors. That’s especially the case if broader market sentiment turns more bearish. ![]() After the stock’s sharp ascent, some investors are wondering whether this rally has been overdone, and if this stock is due for a pullback. Meta Platforms (NASDAQ: META) has staged an impressive comeback from its lows last year, gaining over 250% to climb back above the $300 level. InvestorPlace - Stock Market News, Stock Advice & Trading Tips
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