Key Points
- The number of daily active users across the Meta family of apps (including Instagram, WhatsApp, and Messenger) reached 2.82 billion recently.
- Despite the recent price drop, Meta Platforms is a growing, futuristic project that offers long-term reward potential.
- Meta Platforms is likely to tap into an $800 billion market by 2024 and eventually expand to $1.6 trillion by the end of 2030.
There are simple reasons why investors should buy Meta platforms stocks right now.
Facebook parent Meta Platforms has gotten off to a rough start in 2022 and saw its valuation hit hard. That considerable decline was largely triggered by a fourth-quarter earnings report that left investors unimpressed with both the social media giant's recent performance and its guidance.
There is no doubt that Meta Platforms faced several issues, which took a significant toll on digital advertising revenues. Still, Meta Platforms remains an excellent long-term bet for investors.
Investing in Meta Platforms sharres now is a good way to become a part of the growing, futuristic ecosystem. Let's look at the reasons why Meta Platforms is a top growth stock to buy right now.
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Competitive Advantage
Meta Platforms has a notable competitive and first-mover advantage over rival enterprises.
Meta Platforms has faced severe issues before, including numerous privacy scandals and regulators seeking to break up the business. None of these headwinds have stopped its progress, and that's in large part because its user base has generally kept growing despite all the negative publicity.
The business is solid and resilient, arguably because it benefits from at least two related competitive edges: switching costs and the network effect. People looking to connect with family and friends via a social platform can still hardly do better than to seek them out among Facebook's 1.93 billion daily active users. And the number of daily active users across its entire family of apps, including Instagram, WhatsApp, and Messenger, was 2.82 billion as of December 31.
This vast network provides a solid incentive to its users to stay put, as few of its rivals can compete with it in terms of reach. Moreover, the value of the Meta Platform services increases as more people use them because of the network effect. It has the necessary tools to remain a leader in its field. For all these reasons, investing in Meta Platforms now can help you yield immense returns in the future.
Social Networking and Metaverse
Investing in Meta Platforms now is an effective way to become a part of the future of social communication.
Meta Platforms' rich ecosystem also ensures that advertisers and marketers looking to reach a broad audience (or specific audiences) will continue to flock to its websites and apps. Spending on online advertising is expected to keep growing in the coming years. Even with the privacy-related changes Apple is making to its operating systems, investors can expect Meta Platforms to be a major beneficiary of the growth of online advertising.
But the tech giant is pursuing other revenue opportunities, and arguably the most discussed right now is the metaverse, a persistent 3D virtual world that people will be able to access largely via virtual reality (VR) and augmented reality (AR) devices.
Meta Platforms has already invested billions of dollars into making the metaverse a reality. In October, CEO Mark Zuckerberg said that spending related to the Facebook Reality Labs segment (the company's AR and VR unit) would reduce its 2021 operating profits by about $10 billion. It also noted that annual investments in the metaverse would only increase in the coming years.
It will be a while before the metaverse takes shape and scale. Still, the opportunity could be enormous. For instance, Goldman Sachs analyst Eric Sheridan thinks the metaverse could be an $8 trillion opportunity. Meta Platforms is arguably one of the leaders of this trend, and this makes FB one of the top stocks to buy now.
Don't Miss: Meta Platforms (FB) Stock Price Prediction
Future Roadmap
Meta Platforms has several exciting ventures planned for the next few years, making now a good time to buy its shares
Meta Platforms is actively working on taking social media interaction to the next level through the development of the metaverse. The company envisions a future in which its users will use virtual avatars to interact with others and benefit from various digital experiences.
With the concept of remote working becoming more mainstream, companies and individuals will more easily be able to conduct their business online, and the metaverse might play a huge part in this. Because the metaverse encourages group experiences, activities such as meetings, recruitment, and even live music concerts could potentially be attended online, lowering travel costs and booking a venue for an event.
Despite the company's huge investment in the metaverse, which is dragging down profits, a potentially successful application of the new concept could help Meta Platforms tap into an $800 billion market by 2024, which could eventually expand to $1.6 trillion by the end of 2030. Moreover, Facebook still has the most users among social media companies and can use that leverage to promote the metaverse better than any other company.
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Conclusion
Facebook is at the top of the social media game as the platform caters to a wide variety of people, incorporating many different media aspects, from photos to messenger to text.
That's why we think now could be the perfect time for you to start building your own position in FB stock. Especially given the shares look to be trading on a very cheap valuation compared to its previous years.
Meta Platforms' shares have gotten a lot more affordable lately. The recent drop in Meta Platform's stock price appears to be an excellent opportunity for investors to earn superior returns over the next decade. For these reasons and more, Meta Platforms is a good stock to buy right now.
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