I honestly think META is undervalued now, should be around 20 IMO, whether you like it or not it is a mature company with stable revenue and profits.
I agree that the whole metaverse/VR thing is a big fiasco, though. But remember that META is FB + Messenger, Instagram and Whatsapp, they're gonna do fine.
For the PE to be 20 the stock would have to more than double and that’s not going to happen in this environment
I don’t follow Meta closely so I’m trying to catch up.
Sounds like they’re cash rich so they can afford to burn some money on the VR project, which sounds like it’s a decade away.
They burned something like $65 billion in stock buybacks over the past couple of years. ouch!
Still, that PE shouldn’t be 9 unless revenue is expected to drop quite a lot. Anyway, I’d been interested in knowing who to follow on this stock.
Here’s some info I’ve come across:
“As for capital expenses, Altimeter makes a startling claim: excluding metaverse investments, Meta is still spending more on capex than Apple, Tesla, Twitter, Snap, and Uber combined, with much of the growth apparently coming in the past three years”
Apple is 24 and so is Microsoft.