‘Despite the recent fall, the company’s profile is strong, so there must be many investors who dare to place high hopes on his stock.’
Meta Platform Inc (formerly Facebook) is facing a very turbulent early trading session of 2022 with its share price plunging over 35% so far.
There are many factors that caused the decline including increased competition, Apple's iPhone policy and consumer tracking issues.
Despite the turbulent trading session, the company’s profile remains strong and continues to be of concern to investors especially for those looking for long -term investments.
So, these are among the 3 reasons why Meta shares continue to be the focus of investors for 2022.
1. Social Media Giants
While Facebook has been flanked by various recent controversies especially the issue of user privacy, it has not stopped the growth of the company which has the largest user base of its apps in the world.
The data released saw the Facebook app record 1.93 billion active users a day and active users for its other apps such as Instagram, WhatsApp and Messenger recorded 2.82 billion users as of December 31.
As a result, it’s hard to say Meta is no longer relevant and out of the social media giant race despite increased competition from TikTok and the like.
2. Policy and Metaverse changes
The public knows the Meta ecosystem relies on advertising and marketing as one source of revenue, and with Apple introducing a privacy policy restricting advertising agency access from collecting user data, it’s unlikely Meta will continue to benefit from the growth of online advertising.
Moreover, his involvement in creating a metaverse that is increasingly becoming a reality, is expected to contribute to increased revenue in the future.
Goldman Sachs analyst Eric Sheridan said metaverse offers a return opportunity of $ 8 trillion and Meta which is a major player will definitely capitalize on its growth opportunities for the long term.
3. In Declining Momentum
With the price-to-earnings ratio of Meta shares approaching its lowest level in a year and the price-to-free-cash-flow ratio falling to its lowest level in over 5 years, it’s not wrong to say it’s the right time to start investing into it.
When compared to the stock prices of other social media giants such as Pinterest, Twitter, Snap or Google; Meta stock prices seem to be cheaper and for now investors will see it as an excellent offer to start investing.
Looking at the growth opportunities by tech giants and the like, investors may also want to consider holding their shares for the long term.
