![]() ![]() ![]() A Pew Research Center study conducted earlier this year shows Facebook usage among teenagers has dropped dramatically since 2014-15. The YoY slowdown in Meta's user growth has been mainly attributed to TikTok's growing popularity among young users. Macroeconomic challenges, increased competition, a change in Apple Inc.'s ( AAPL) privacy policy, decelerating user growth, and increased public scrutiny are key factors driving Meta Platforms' poor share price performance. Meta Platforms is among the hardest hit stocks by the 2022 tech selloff, falling more than 60% year to date. Investors with a relatively long-term investment horizon such as myself seem less troubled by Meta's lackluster market performance of late but it makes sense to revisit the investment thesis to understand where the company is headed. Tech stocks have come under pressure this year but Meta's struggles extend beyond interest rate hikes and the challenging macroeconomic environment, which is evident from the fact that Meta is the worst-performer among FAANG stocks not just this year but in the last 5 years.Įxhibit 1: 5-year performance of FAANG stocks Today, Meta has found itself in a tough spot with growth prospects suddenly looking bleak. There were no second thoughts when I added Meta stock to the model growth portfolio of Leads From Gurus back in 2021 when the service was launched. ( NASDAQ: META), since it was known as Facebook, is a company that I have always believed in. ![]()
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