Connect with us

Hi, what are you looking for?


Expert opinion: don’t go ‘bargain hunting in Meta Platforms Inc

Meta Platforms Inc (NASDAQ: META) down over 50% year-to-date is hardly an opportunity worth exploring, says Paul Meeks. He’s a Portfolio Manager at Independent Solutions.

Both advertising and metaverse look unappealing

Formerly known as Facebook, the mega-cap technology name generates about 97% of its revenue from advertising, which tends to be the first expenditure that’s cut in an economic downturn.

Since Meeks does not expect “recession” to be a short-lived phenomenon, he, therefore, sees continued struggle for the ad-focused Meta Platforms Inc. But there’s more to why he doesn’t like this stock at the current historically low valuation.

The company is going through a metamorphosis. What is the metaverse and once we get to the other side, what is this company’s position in it. It may not necessarily be the dominant player. So, there’s some wrenching changes.

Meta to take a big hit on earnings this year

Interestingly, the rest of the FAANG stocks have recovered significantly from their June lows. Meta, on the other hand, is still trading near the bottom after reporting its first-ever year-on-year decline in quarterly revenue last month.

Commenting on its valuation, however, Meeks said on CNBC’s “Squawk Box”:

EPS this year is going to decline by 40% and the stock is trading at about 18 times earnings. So, even given the fact that it’s still the weakest among the FAANG, I don’t know if it’s an opportunity yet to go bargain hunting in this name.

Also on Friday, Morgan Stanley lowered its price target on Meta Platforms citing slower monetisation at “Reels” and declining engagement at large.   

The post Expert opinion: don’t go ‘bargain hunting in Meta Platforms Inc appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023