META Is A Buy For Long Term Investors
There’s very little to like about the former Facebook – Meta Platforms (META) – right now. The stock isn’t working and the business is struggling. But great companies figure things out.
META has almost 2 billion Daily Active Users (DAUs) and Instagram – along with Snapchat – is the most popular social media app among young people.
True: Revenue declined year over year in the 2Q22 for the first time in META’s history. True: DAUs are plateauing and increased only 10 million in the quarter to 1.97 billion. True: META is making a huge investment in the metaverse this year that will squeeze earnings substantially.
For all these reasons, META may be dead money in the short term. But – slowly but surely – they will put the pieces back together and right the ship. They have great assets and a brilliant CEO. If you can be patient and look a year or two out, I think META will reward you nicely.