Despite its detractors, social media isn’t going anywhere. And while a lot of attention might be on Elon Musk’s Twitter, media attention doesn’t necessarily equate to the platforms people use every day. Meta Platforms Inc (NASDAQ: META) holds those platforms.
And META has had a good couple of months and an excellent year (despite a few bumps along the way). It’s risen 67.62% over the last year, and while not all things are guaranteed, there’s no obvious reason why at least modest success cannot continue for the social media giant in the year to come.
Similarly, from our perspective at WallStreetZen, META looks to be in a good position.
First off, it currently has a Zen Rating of B, meaning it is in the top 20% of stocks we cover. Breaking it down further:
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Its Financials score is among the best we measure, and META has the assets needed to handle its liabilities and debt payments, even though it has a high debt-to-equity ratio of 0.56.
- Our AI system, which studies trends in pricing and market patterns, notes that META is in a good position to provide favorable returns at this time.
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Sentiment is strong for META, hardly a surprise given its many proponents.
What has been the cause of these gains as well as its good standing, and what can we expect in the year to come? Major threads include:
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META’s platforms are used by a total of 3.24 billion people daily. Whether it’s Instagram, Facebook, WhatsApp, or Messenger, people are reliant on META, and billions of people aren’t going to move overnight.
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Furthermore, META has reached a critical mass on its platforms. They are where people are, so they are where new people will sign up, even if they aren’t the biggest fans of the platform.
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While AI has had its triumphs and losses in the last year, META has worked to push into the AI space. And social media has more natural uses than most industries, given the amount of data it works through regularly. Whether through improved ad targeting, feed creation, or something else entirely, AI poses to improve META’s profitability and retention.
Reasons to Look into META
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Our Zen Ratings system gives it a score of B, and stocks with that rating had an average return of +19.88%. In particular, it scored an A in Financials, indicating extremely good financial health and balance sheets.
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The consensus among analysts we follow is a “Strong Buy” for META, and it has a fair average forecast even after a good run in the last few months.
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META maintains a relatively strong market share between Facebook and Instagram, and looks to innovate in ways other tech giants simply cannot.
However, although META might be considered a more stable choice, social media stocks can turn on a dime and are one news story away from a rally or a spiral (consider if the TikTok ban goes through). To stay on top of things, you need help in the form of WallStreetZen Premium. With it, you get full access to all the information you need to make the right choices for your portfolio. You’ll also have an unlimited watchlist to get key notifications. It’s a great way to give yourself peace of mind and save time.
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