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Meta Platforms Is Set To Break Out And The Metaverse Is The Cherry On Top


  • Meta Platforms' growth story remains intact, with robust drivers to keep powering its ARPU growth.
  • The company is set to make more money than analysts predict, and the stock is actually cheaper than it seems.
  • We are Long on Meta Platforms both for its short-term upside potential and for its long-term growth story, including the Metaverse.
  • This idea was discussed in more depth with members of my private investing community, Wheel of Fortune. Learn More »

Facebook Covers Sign At Menlo Park Headquarters

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I have shared my thoughts on Meta Platforms (FB), previously under the name Facebook, more than any other company here on Seeking Alpha. I have expressed my bullish views on why the stock is set to

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This article was written by

Nikolaos Sismanis profile picture

Nikolaos Sismanis holds a BSc in Banking and Finance and has over five years of experience as an equities analyst. He covers a variety of growth stocks and income stocks, including identifying those with the highest expected return potential, and a solid margin of safety.

He is a contributing author to the investing group Wheel of Fortune where they share actionable trading ideas across all asset-classes, sectors and industries. The goal of the service is to provide a one-stop-shop for investment and portfolio ideas, while educating the vibrant community of subscribers. Features of the service include: the Funds Macro Portfolio (only ETFs and CEFs) for less active investors, the Single Macro Portfolio (single equity focused) for more active investors, educational content, and a live chat room to openly discuss ideas with like-minded investors and The Fortune Teller. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FB, PINS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (38)

The Fortune Teller profile picture
"There's a good a reason why WoF is one out of only five services (out of 186 SA Marketplace services in total) with a 5-star rating gathered by at least 50 reviews."

DBXperience profile picture
ARPU and customer growth tell the story pretty well. The ad market is huge, global, shifting relentlessly digital and growing at a decent pace. FB (and GOOG and AMZN advertising) has 3 huge secular growth drivers with an Irreplaceable service, sticky users and customers who desire proof of performance.

That's not counting all the other growth opportunities ahead of the company and new product opportunities. Pretty compelling.
Who can explain what metaverse is and how it may benefit the consumer ?
Thank you
Nikolaos Sismanis profile picture
@TRADE SECRET That's a very broad question, like asking what the internet is. Think of it as the internet 3.0. Lots of informative content on youtube. It's better to watch a few videos than read a wall of text about them. The visuals help. Consumers benefit from convenience, access to virtual worlds/spaces, and a new creator economy.
At this point how much of Meta is pure hype? Kinda like the Apple car. People living in metaspace [as holographic beings] is many decades away or if ever.
ArtfulDodger profile picture
Thank you for the piece, NS. I'm giving you a follow tap for it. AD
ArtfulDodger profile picture

The bullet point reads: "The company is set to make more money than analysts predict, and the stock is actually cheaper than it seems."

Comment: I agree. And this alone makes this great company worth buying and making a staple in a portfolio. I believe that at the current price, we're paying a 50% discount on everything future FB will do.

That, and the fact that FB is well-managed, cash-fat, has super margins above most every company anywhere, brings in a load of cash per-employee, and stands to continue bringing in loads of cash—makes it a top stock in my portfolio. And I believe ought to be in every investor's portfolio.

This stands as well for GOOG.

I am, the ArtfulDodger
Ishi Kenjo profile picture
This $hit is beyond retarded. A product of peak stupidity that hasn't been seen since pets.com and such. At least those companies had a needed product. The era of free $ comes to an end when growth dies hard this quarter. Zombie companies will die. Meta is a sign of the market insanity. P/E's matter this quarter as the smart $ has already rotated out of tech. Kathy Wood and Meta are at serious risk!!!
06 Jan. 2022
@Ishi Kenjo I hope you are right. But like big tobacco people are addicted to the product and the stock; even though a more evil management team has not existed since Purdue Pharma. Who wants this company to survive the next evolution of the internet? And just like smoking we can all quit! But much like OxyContin the damage may be too much for far too many to self correct.
I like FB - the company has addictive products. It is kind of like buying Philip Morris back in 1950. I agree it is wildly undervalued too. The #1 stock in the whole universe of stocks. Sure there will be regulation coming but I don't see that as an insurmountable impediment to future growth.
Anyone with conscience will not invest in Meta Platform at any price. It is the poster child of greedy capitalism that profits from societal distruction. It is turning humans into zombies
Windermer profile picture
@engineeronfire materialistic mindless consuming zombies
Windermer profile picture
imagine someone paying to have virtual nike nft sneakers for clout from invisible virtual friends - dumb
@engineeronfire every company on nasdaq is based on greedy capitalism ! With your logic I think you are better off investing in communist Chinese stocks where capitalism is shunt
No one is going to use an adware company for a meta-verse. A better bet is Apple or Sony.
Hate FB. Love the stock
@MDN1 Meta-hate?
Mr. Gumbo profile picture
@MDN1 well said.
@MDN1 It's like this: I hate hamburgers. I like McD stock, I hate sugary drinks - not good for health - but I love Coca Cola - K stock.
Kenmare profile picture
Nick, I like your remarks but I wouldn't underestimate the political risks to the company. The knives are out for Zuck on both sides of the aisle in Congress. I think 2022 will be the crucial year for political risk. If nothing happens this year the political threat will go away. I'm in a wait and see mode on Meta for that reason.
Nikolaos Sismanis profile picture
@Kenmare Hi Declan! I see your point, but we have seen the story unfold again. The Headlines may not be pretty, but the cash flow is :)
JackKu profile picture
I do wonder how this will go in the Metaverse. Would people pay FB-tax on stuff they buy in the Metaverse? Maybe the whole economy within Metaverse will not benefit Meta … with crypto currencies it might be that people trade stuff among themselves and not need Meta.
I think that’s the next thing that will happen, … maybe even advertising, so people will be paid directly by the advertiser.
@JackKu Same here. In my opinion, nobody really knows how companies make money in metaverse. Similar like internet many years ago (online shopping/banking, ads etc). But if we believe that metaverse will be big, some companies will dominate metaverse and figure out how to make money out of it over time. And FB is in a position to be a dominant player in metaverse.
bk25 profile picture
@JackKu I don't get it either. And everyone in Meta land is going to be nice and act practice civility? It sounds like a computerized version of HELL.
@bk25 You don't have to participate... Just buy the stock. Just like you don't participate in reddit back and forth, or facebook posts, you can still own the stock and benefit.
JackKu profile picture
Totally have the same thoughts on the stock. And questioning why other investors do not see this. I will not sell this stock at these low valuations.
Maybe the optimistic people (on FB) already own the stock ;)
Meta Scam. Just wait till some old person falls down the stairs wearing the stupid VR headset.
ceo_of_the_whole_sht profile picture
@T87 lol - just don't wear it m8 - safety above all
ChristopherSmith profile picture
Agree, excellent article. Buying Oculus way back in 2014 shows the forward type of thinking going in here…..
Nikolaos Sismanis profile picture
@ChristopherSmith Thank you for reading and sharing your thoughts!
ceo_of_the_whole_sht profile picture
Another time that Nikolaos Sismanis is spitting straight F A C T S.

Not only Meta is set to break out, but also the Metaverse will indeed be the cherry on top that will skyrocket the price in a couple of years - Boomers make sure to buy every dip, HODL Long Meta, and get put your seat belts on for this one (no financial advice whatsoever - Always do your dd).

Nikolaos Sismanis keep pushing these golden nuggets for us - Cheers mate!
Good analysis, thanks.
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