Will Meta NASDAQ Stock Recover And Growth Fuel Company Success
Meta NASDAQ Stock Recovers and Poised for Company Growth Amidst Technological Innovations and Market Opportunities
Meta Stock (NASDAQ:META), in recent months, has experienced a remarkable recovery and growth with its stock price tripling off last year’s low. Such rapid recovery has led analysts to perceive the potential for further upside. Meta's 34.9 times trailing price-to-earnings (P/E) multiple is within the FAANG stock norm of trading above 30 times, hence it does not appear overly stretched despite being higher than its five-year historical average of 24.2.
Meta stock rebound, under the leadership of CEO Mark Zuckerberg, is leveraging technology to enhance its social media business while simultaneously exploring new markets. The market's faith in Zuckerberg's strategic acumen has been instrumental in the company's resilience during the current high-interest-rate era for tech. The company's innovative orientation has been at the core of its ability to monetize new technologies like the Metaverse and AI, despite a slow start in the Metaverse sector. It is expected that ads based on virtual reality (VR) and augmented reality (AR) might drive growth in the coming decade.
Meta's plan to launch a new social-media network to compete with Twitter, known as Project 92, presents a potential opportunity. This comes at a time when Twitter's new owner, Elon Musk, is facing backlash from certain Twitter users. Given Meta's expansive network built around Facebook and Instagram, the move to launch a Twitter-like platform could be viewed as opportunistic. Analysts rate META stock as a Strong Buy, with an average price target of $289.68, implying an upside potential of 3.5%.
In addition to its advancements in social media, Meta stock news says that meta is launching the Quest 3 VR headset, a device with substantial improvements in video pass-through technology and navigation speed compared to its predecessor, Quest 2. Starting at $499 for the 128 GB model, it offers a competitively priced alternative to Apple's Vision Pro, priced at $3,499. Analysts' forecasts indicate a steady increase in Meta's earnings per share (EPS) in the coming years. Analsyt's stock prediction for 2025 an EPS boost to $16.60 , Future Meta stock as a long-term investment.
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Further progress is anticipated as Meta executes its AR/VR device roadmap while exploring a potential partnership with Magic Leap to bring true AR glasses to the market. Despite the stock rally, the company is still considered undervalued given its opportunity in the Metaverse and AR/VR devices.
How High Will META Go?
Meta Platforms Inc (NASDAQ:META) 52 analysts providing Meta Platforms Inc price targets for the next 12 months have a median price target of $280.00, with a high estimate of $350.00 and a low estimate of $100.00. The median estimate reflects a decrease of -0.60% from the previous price of 281.70.
Will META stock recover in 2023?
35 analysts project that META Stock will generate $9.29 EPS in 2023, and 32 analysts have provided EPS guidance of $11.35 for 2024. This positions META's current P/E ratio at 25.04, its forward P/E ratio at 23.26 using the 2023 guidance, and its forward P/E ratio at 19.03 using the 2024 guidance.
In another significant development, Meta will return to its former status as a full growth stock after FTSE Russell concludes its annual reshuffle of stock index components. As a result, fund managers are expected to adjust their portfolios to align with the new index weightings. The Russell Reconstitution often results in substantial stock trading, creating opportunities for investors to exploit potential price dislocations.
The reconstitution will lead to Meta being considered 100% growth, following a brief detour last year with a heavy value shift. This could pose challenges for portfolio managers who did not own Meta, as the benchmark will now reflect the stock's strong gains over the past year.
Furthermore reports shows a significant surge in online searches for Meta, which may have contributed to the company's impressive recovery of 131.50% year-to-date for company stock in NASDAQ. As the company continues to innovate and push the boundaries in the tech landscape, its upward trajectory is projected to persist.