"Shares of the social media and online advertising giant have been on a wild ride of late. A market selloff driven by concerns around artificial intelligence (AI) spending has sent shares of every major mega-cap tech stock investing heavily in this trend (and Meta is one of the group) down significantly. From Meta's peak this year to its current level, shares are trading off around 25%. That's a big move in a short amount of time, and one for investors to consider."
"There are some in the bullish camp, like myself, who think this dip is one that's likely worth buying for those thinking long-term. But there are certainly reasons why some investors may choose to look past Meta toward other high-growth names right now, considering the company's balance of risks. Let's dive into the bullish and bearish case around Meta right now."
"Remember the whole debacle around Meta's Reality Labs division? The company's heavy spending on its metaverse goals, in becoming a leader in both the hardware and software supporting virtual reality and a metaverse-driven future, hasn't really led to anything in the way of profitability. And while the company has ramped down its spending considerably in this division, it's the money-losing aspect of trying to be first (or capture some first-mover a"
Meta Platforms shares have fallen roughly 25% from their 2024 peak amid market concerns about AI-related spending. The company still generates more than 4 billion eyeballs across its social media applications globally. Heavy losses in the Reality Labs division have weighed on results, though Reality Labs is beginning to show operating profitability after significant prior investment. Meta reduced spending in Reality Labs, reflecting a pullback from aggressive metaverse spending. Some investors view the decline as a long-term buying opportunity, while others see continued balance-of-risk concerns in the company's strategy.
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