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Metaplatform (Nasdaq:Meta) are almost always controversial. Should this change your plans to participate in the Meta platform’s incredible revenue growth? The choice is yours, but I’m bullish on META stock and believe this member of the Magnificent Seven will soon I don’t think it will stall.
Best of all, Meta Platforms is a social media platform provider that owns Facebook, Instagram, and WhatsApp, as well as Reels and Threads. At the same time, CEO Mark Zuckerberg wants MetaPlatform to become a strong competitor not only in artificial intelligence (AI) but also in the Metaverse.
You’ve probably heard that Metaplatform is the subject of regulatory pressure in the US and Europe. However, that hasn’t stopped META stock from rising over the past few years. Still, there are new developments that may or may not derail Metaplatform’s growth story, so let’s get into the details here.
Why is Metaplatform in the red today?
Overall, the U.S. stock market was a little volatile today, but fairly strong. But while Meta Platforms is one of the “Magnificent Seven” companies, today’s stock price wasn’t all that great.
With META stock down more than 4%, investors may have wondered if Mr. Zuckerberg had made a surprising announcement. But in reality, the cause of Wall Street’s consternation was not Zuckerberg, but a famous politician.
Specifically, former President Donald Trump had some less-than-flattering comments about Metaplatform. The main topic of recent rants was TikTok, a rival social media platform that Trump considered banning during his presidency.
In my opinion, it’s important for investors to be aware of what’s in the news, even if they don’t take a specific position. So here’s what happened.according to Reuters, President Trump asserted, “TikTok has a lot of good and bad things,” and “TikTok has a lot of young kids who would go crazy without it.” Therefore, President Trump does not seem to be advocating an outright ban on TikTok at this point.
But more central to today’s conversation is President Trump’s stance on Metaplatforms’ Facebook. Considering how banning TikTok would benefit Facebook, President Trump declared, “We’re not going to double the size of Facebook.” “I think Facebook has been very dishonest,” the former president added.
Then Trump took it another notch.According to reports wall street journal“I consider Facebook, along with much of the media, to be the enemy of the people,” Trump said.
Metaplatforms are a target, but they can also be a source of income.
Going forward, investors should expect Metaplatform to be the subject of controversy. Zuckerberg isn’t known for being “nice” with regulators. It appears he wants to continue what he’s been doing with the Meta platform and pay any fines that regulators may impose on the company.
Metaplatforms are well-funded, so paying fines is usually not an issue. Take a look at the TipRanks Meta Platform financials page and you’ll see what I’m talking about. The company’s revenue increased from $28.64 billion in the quarter ended March 2023 to $40.11 billion in the quarter ended December 2023.
Speaking of growth, Metaplatforms’ cash, cash equivalents, and short-term investment positions increased every quarter, reaching $65.4 billion by the end of last year. Meta Platforms is so cash-rich that it currently pays a dividend.
Next, we checked Meta Platforms’ earnings page and found that the company has consistently grown its quarterly EPS over a year and a half. Additionally, Meta Platforms is currently beating Wall Street’s consensus EPS estimates for the full year. Apparently, this social media giant is virtually unstoppable when it comes to generating advertising revenue and posting staggering profits.
Is META stock a buy, according to analysts?
At TipRanks, META is rated as a Strong Buy based on 40 Buy, 2 Hold, and 1 Sell ratings assigned by analysts over the past 3 months. Metaplatform’s average price target is $528.80, suggesting 9.35% upside potential.
If you’re wondering which analysts to follow if you want to buy or sell META stock, the most profitable analyst covering the stock (over a 1-year period) is Brad Erickson of RBC Capital. , the average return is 76.56%. The rating and success rate is 77%. Click on the image below for more information.
Bottom line: Should you consider META stock?
The fearful attitude will be, “What if Metaplatform’s stock price continues to fall?” I prefer to be opportunistic. I would definitely consider buying Meta stock if the stock price drops to a point where the controversy doesn’t destroy the Meta platform.
You can also consider buying Meta Platforms stock now and adding to your position if the stock price continues to fall. At the end of the day, heated debates will come and go, but meta-platforms will continue to make huge profits.
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