Meta Platforms: Structural Issues Don’t Justify Current Prices

  • Meta Platforms’ stock has risen significantly this year, but the company still faces structural issues and threats from competition and privacy concerns.
  • The company’s profitability has been impacted by its investments in the Reality Labs segment, which will continue to burn billions of dollars for the next decade.
  • While Meta’s advertising revenues have shown growth, monetization issues and competition from TikTok have affected its ability to generate higher profits.

Investment Thesis

Meta Platforms’ (NASDAQ:META) stock has risen 176% year to date and 272% since the bottom of November 2022 – when it was trading around $90 per share – almost reaching its all-time high of $380.