Zuckerberg Is Betting Big On AI, But Meta's Stock Price Is High
Summary
- Meta Platforms has shown impressive growth, with a 33% increase in stock value and strong quarterly and full-year financial results, including a 50.5% YoY EPS growth.
- Despite the positive performance, I maintain a "Hold" rating due to the stock's high valuation multiple of 30, making it not a bargain.
- Meta's revenue growth is driven by increased ad prices and impressions, but future growth will require new revenue streams like Threads and AI glasses.
- While Meta has potential for double-digit growth, I will hold my shares but not increase my position at current valuation levels.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of META 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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