Meta: Buy The Crash

Summary

  • We are bullish on Meta Platforms because the company’s valuation has never been so attractive. We believe Meta stock provides an attractive entry point for the long-term investor.
  • Meta’s 3Q22 earnings report was nothing short of a disaster. The stock dropped almost 25% in the first 24 hours after the earnings.
  • Macroeconomic headwinds persist, and Meta is facing increasing costs on all fronts as well as slowing active user growth and revenue.
  • We believe the company’s core business is still functional and believe the company is well-positioned to grow when macroeconomic headwinds ease.
  • On a P/E basis, Meta is currently trading at 8.8x C2024 EPS of $10.64 compared to the average peer group of 18.7x.

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Lemon_tm

We are bullish on Meta Platforms (NASDAQ:META) despite missing expectations on revenue, ads coming in weak and investment losses in the metaverse in 3Q22. We believe that market volatility and inflationary pressure hit Meta hard. Yet, we believe the pullback has

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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