Shares in Meta Platforms (META) stock have had a bearish month, down as much as 15% this November, thanks to a poor tech stock market. META has dropped about 16% over the past 21 trading days. This recent decline signals renewed worries regarding slowing user growth and substantial investments in artificial intelligence and reality labs. However, some experts are still calling META a buy, suggesting now is the time to buy the stock.
Analysts at Freedom Capital Markets recently upgraded their price forecast for Meta Platforms’ stock, suggesting the tech giant’s shares will boom. Analyst Saken Ismailov has upgraded Meta from Hold to Buy and set a price target of $800. Wolfe Research, Guggenheim, and TD Cowen all maintain high price targets as well, indicating strong growth potential.
Furthermore, Meta may have received a bullish catalyst on Tuesday that could fuel a stock rally. Meta recently won a significant antitrust case against the FTC, allowing it to retain ownership of Instagram and WhatsApp. In his ruling, Judge James Boasberg said the FTC failed to prove that Meta purchased Instagram and WhatsApp with the goal of eliminating them as competitors in the social media market. “With apps surging and receding, chasing one craze and moving on from others, and adding new features with each passing year, the FTC has understandably struggled to fix the boundaries of Meta’s product market,” Boasberg wrote in his ruling.
“Even so, it continues to insist that Meta competes with the same old rivals it has had for the last decade, that the company holds a monopoly among that small set, and that it maintained that monopoly through anticompetitive acquisitions. Whether or not Meta enjoyed monopoly power in the past, though, the agency must show that it continues to hold such power now,” Boasberg added.
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While other Wall Street analysts outside of Ismailov are worried about Meta stock, Mark Zuckerberg isn’t either. “Meta Superintelligence Labs is off to a great start, and we continue to lead the industry in AI glasses,” he said during the earnings call If we deliver even a fraction of the opportunity ahead, then the next few years will be the most exciting period in our history.”
META is trading in the middle of its 52-week range and below its 200-day simple moving average. The stock is currently trading at a P/E multiple of 25.9 and a P/EBIT multiple of 17.8. It has also provided a median return of 74.5% within a year following sharp declines since 2010