$Meta Platforms, Inc.(META)$ Don’t freak out about the recent stock drops – it’s been pretty volatile lately, and we’ve even slipped into a bear market. But if we look at past pullbacks, it’s clear this stock isn’t immune to the ups and downs of the broader market.
That said, it’s important to remember that Meta is still in an uptrend, with its 50-week moving average helping to keep things moving forward. Right now, the stock’s trading at a forward earnings multiple of 23x, which is pretty close to its 5-year average of 22.7x. Plus, with a forward PEG ratio of 1.34, right around the sector median of 1.3, it feels like the market’s maybe being a bit too negative on Meta’s AI growth potential.
Given that the market probably hasn’t fully factored in these long-term growth drivers, I think the risk/reward here looks pretty solid.
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