Facebook might’ve changed its name back in October 2021, but is Meta Platforms stock (Nasdaq: META) a buy as the massive tech company shifts gears?
In the ever-evolving world of technology, it’s important to stay ahead of the curve and anticipate what will be trending in the near future.
Meta Platforms has been doing just that after shifting from its start as social media platform Facebook. Let’s explore what this company does and its outlook for 2023.
What Does Meta Platforms Do?
Before we talk about Meta’s future, we have to talk about its major shift in business strategy.
Facebook changed its name to Meta Platforms back in October 2021.
This change was part of an effort by the company to move away from being just a social media platform and become more of a technology-driven, open source platform for developers. The new name reflects this shift towards becoming an “open meta platform” that enables developers to build applications that are interoperable between different platforms, rather than relying on proprietary code.
With the new name, Meta Platforms hopes to create an ecosystem where developers can easily build apps and services across all types of devices without worrying about compatibility issues or having their data siloed off into separate systems.
From website development to content creation, META offer a wide range of services designed to make businesses more successful online.
In addition to providing artificial intelligence (AI) solutions for businesses, Meta Platforms is also an active investor in start-ups with potential for growth. It uses expertise in digital marketing and knowledge of the industry to identify emerging technologies that could become game changers within their respective industries.
By investing early on in these companies with potential, Meta Platforms can maximize their returns before they become widely available.
But does mean good things are ahead for Meta Platforms stock?
What’s Next for META?
Meta Platforms is well-positioned for continued growth over the next few years. You can see that reflected in the growth factor of Stock Power Ratings below.
Its focus on research and development has made it one of the most trusted names in AI technology today and it will continue to lead the way as new advancements emerge.
It plans to expand its portfolio by investing in other promising startups while continuing to provide top-notch services for existing clients.
But that doesn’t mean the stock is well-positioned for outsized gains in 2023.
Meta Platforms Stock Power Ratings
Meta Platforms stock rates a lowly 31 out of 100 within Stock Power Ratings, as of mid-January 2023. That means the system expects META to underperform the broader market over the next 12 months.
META’s Stock Power Ratings in January 2023.
Explaining some of the stock’s factor ratings.
Like many tech other Big Tech stocks, META boasts great scores on our fundamental factors:
- A value score of 64.
- A quality score of 99.
- A growth score of 73.
Investors were not shy about throwing money at some of the biggest tech names for the decade leading up to 2022’s bear market. And these companies used that money well, growing their businesses and raking in profits.
But the magic stopped last year. And that’s why Meta Platforms stock rates so poorly on our price-based factors:
- A momentum score of 3.
- A size score of 0!
- A volatility score of 17.
META has lost 57% of its stock value in the last year alone!
And selling looks set to continue as interest rates remain high and cheap debt evaporates.
Bottom line: Meta Platforms stock enjoyed the last bull market, but it could be more rough action ahead if you follow Stock Power Ratings.