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Is Facebook a Buy, Sell, Or Hold?
The stock price of Meta Platforms (FB) has been range-bound, and this article will provide a bearish analysis and stock projections through 2022. Let’s look at a few of the most important things to consider before making a decision on FB. The stock is currently down about 6% and looks like it will continue to drop. But what should you do if the stock price falls below your price threshold?
Meta Platforms (FB) stock price action has been bearish
Facebook (FB) and its parent company Meta Platforms (META) have both been in bear market territory lately. Since early February, Meta has made lower highs while huddling its 50-day simple moving average. To see also : How to Tag People on Facebook. With the recent price action, this stock looks undervalued. Its RSI and MACD indicators both show underbought conditions, which is a good sign for short sellers.
The stock price of Meta Platforms has been in bear territory since its initial public offering in September 2021. Its stock fell more than double the decline in the Nasdaq 100 since then. Its stock price has fallen by almost three-fourths, mainly due to the company’s metaverse pivot. The company has cited multiple headwinds that include changes to Apple’s iOS privacy settings, increased competition from TikTok, and an inflation rate of 8.3%.
The company’s monthly active user number has decreased by a quarter, and earnings per share fell. This has prompted investors to be wary of Facebook’s heavy transition into the metaverse. The company’s Meta Platforms division posted an 11-digit loss, signaling the company’s heavy investment in this venture. The company is also struggling to monetize its platform, due to legal concerns, macro headwinds, and other issues.
Meta Platforms (FB) stock projections for 2022
The most recent Meta Platforms stock projections for 2022 show a decline of 29% in the company’s stock price. This decline is likely the result of a downtrend that started in September 2021. To see also : How to Unfriend All Friends on Facebook. This decline is the result of the company’s downtrend being fueled by a pandemic tailwind and mass vaccinations. In fact, the stock is down 53% year to date.
As for the near future, Meta (FB) stock is projected to reach $272 by the end of 2022. It is expected to reach $360 in 2023 and $470 by 2025. By 2029, the stock should hit $670, and will be worth $765 by 2030. These projections aren’t based on past performance. The firm may face additional difficulties that will cause its stock to plummet.
A reliable stock projection can give investors a sense of what to expect. In addition to historical data, Meta Platforms Old stock price predictions can show investors the price of Meta Platforms in the near future. They include fundamental intrinsic valuation, analyst consensus, and EPS estimates. But they do not consider every factor that could affect the company’s stock price. Another important factor to consider is the hype associated with the stock.
Meta Platforms (FB) stock price action has been range-bound
Since the company’s earnings meltdown in February, Meta Platforms stock has been range-bound. While the company has performed well recently, many factors are holding it back. Facebook Reels is not likely to compete with TikTok, and Amazon and Alphabet’s YouTube may be more popular than Meta Platforms’ offerings. Furthermore, the company may be overlooking existing platforms, and analysts’ bearish revisions and forecasts are not yet fully transparent. In addition, Meta Platforms stock price action has failed to hold an engulfing hammer candlestick bottoming pattern.
This trend is reminiscent of Facebook’s early years, when it traded under the FB ticker. But the company changed its name and ticker to META. To see also : Is BlueJeans Owned by Facebook?. Today, Meta is one of the largest social networks, with more than 2 billion active users across Facebook, WhatsApp, Instagram, and Messenger. It relies heavily on advertising, but also uses in-app purchasing through its games to generate additional revenue.
The most concerning scenario for investors is Scenario 3. The breakeven level for this situation is approximately 32% higher than the current spot level. Given the tightening environment in the U.S., it is unlikely that Meta will rocket back to its 2021 levels. But there’s no reason to get excited about Meta just yet. If you’re considering buying Meta Platforms stock, make sure to take this into consideration.
