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Is It Too Late to Jump on the Meta Platforms Stock Bandwagon for 2024?

In 2023, Meta Platforms saw a remarkable 200% increase, but in 2022, Wall Street had all but abandoned it. The company aims to control expenses after a pandemic spending spree and Apple's privacy changes. While the stock appears expensive historically, it could hold value in the future. Investing in Meta stock for the long term seems timely. Notably, Randi Zuckerberg serves on The Motley Fool's board of directors, and the company has positions in and recommends Adobe, Apple, Meta Platforms, and Salesforce.

Staff Editor January 21, 2024

Meta Platforms, the tech giant formerly known as Facebook, has had a rollercoaster ride in the stock market. After a staggering rally and close to 200% gains in 2023, it’s hard to imagine that just a year prior, Wall Street had practically written off the company. In 2022, Meta was in the doldrums, grappling with the aftermath of a pandemic-induced spending spree. CEO Mark Zuckerberg declared it the “Year of efficiency,” vowing to keep a tight rein on expenses.

The company’s 2022 results were marred by a drop in user activity and digital spending on its apps due to the waning effects of the pandemic. Additionally, Apple’s privacy changes took a toll on Meta’s ad monetization on its rival’s devices. This perfect storm led to a bleak outlook, causing the stock to appear overpriced from a historical perspective. However, looking forward, Meta’s shares could be undervalued, presenting an attractive opportunity for prospective investors.

Despite the challenges, Meta Platforms seems poised for a potential resurgence. With the company navigating through the headwinds, the stock may offer long-term value. Randi Zuckerberg, former director of market development and spokesperson for Facebook, and the sister of CEO Mark Zuckerberg, is associated with The Motley Fool’s board of directors. The Motley Fool, a leading financial and investment advisory, holds positions in and endorses Adobe, Apple, Meta Platforms, and Salesforce.

In a rapidly evolving tech landscape, Meta’s strategic shifts and adaptation to market dynamics position it for a compelling growth trajectory. As the company recalibrates its operations and diversifies revenue streams, the stock’s forward-looking prospects appear promising. With Meta’s robust ecosystem spanning social media, virtual reality, and augmented reality, the company is well-positioned to capture emerging opportunities in the digital realm.

In conclusion, while Meta Platforms faced significant headwinds in 2022, its forward-looking potential indicates a possible undervaluation in the stock. As the company charts a path for sustained growth and innovation, investors may find Meta’s shares an intriguing prospect for long-term investment.