![]() ![]() ![]() However, keep in mind that the slump in digital advertising demand hurt META. Shares may look pricey today, especially when compared to most of the other FAANG components. There may be multiple arguments backing the bear case for META stock, but for each one, I would beg to differ. On top of pointing to META’s rich valuation, and current near-term issues, bearish investors are also making the argument that the tech giant’s status is overhyped. The European Union recently ordered META to pay a $1.3 billion fine because of violations of EU data privacy laws. ![]() Although Meta delivered a strong earnings beat this quarter, it still needs to get back to levels reported prior to the tech sector slowdown. The company has a high valuation for a mature, albeit growing, business, trading at 32.5 times trailing twelve month earnings.Īlongside this, they will point out that the company still faces many headwinds. It comprises more than merely pointing out that META stock currently trades at a premium. With this, it’s not much of a surprise that many argue a correction is on the way.Īdmittedly, the bear case these skeptics lay out is quite substantive. In a brief span of time, Meta Platforms has gone from an out-of-favor stock back to an in-favor stock. ![]()
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