Meta stock has been up and down in recent weeks amid some changes and announcements affecting the technology giant.
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For instance, according to the Wall Street Journal, shares of Meta Platforms were down nearly 6% in the week after Facebook founder Mark Zuckerberg announced on Jan. 7 that he was ending the company’s internal fact-checking program to replace it with a user-based option.
Recent layoffs and restructuring have also shaken investor confidence, according to Andrew Lokenauth, money expert and founder of the TheFinanceNewsletter.com. GOBankingRates talked to Lokenauth and Bubba Peek, a financial advisor and owner of Bubba Land Company, for advice about whether to invest now or wait when it comes to Meta stock.
For Lokenauth, there are several positive factors that point to now being a smart time to cautiously invest in Meta stock.
“Advertising revenue remains strong, despite market challenges,” Lokenauth said. “Meta’s still the [king] of social media, they’re sitting on mountains of cash and WhatsApp monetization hasn’t even really started yet.”
Peek added, “It is important to measure anticipated long-term growth versus the likelihood of market-changing volatility at other points.”
Peek said important things to watch include Meta’s investments in the metaverse, competition in the digital economy and the overall situation of the economy.
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As for potential risks, Lokenauth said there are a couple of key things to keep an eye on.
“Let’s be real, there are some things that make me nervous,” Lokenauth said. He pointed to Apple as an example, saying its privacy changes have hurt its ad business. He also mentioned future regulatory concerns as a possible pitfall.
If Meta’s recent or future changes to policy end up hurting its revenue more than anticipated, the stock price could suffer.
If you’re thinking of investing now, Lokenauth said to consider buying in smaller amounts over time and perhaps waiting for the next earnings report to see clearer trends.
“You could also watch for any major market corrections that could bring better entry points,” he said. “I would say not to go all in at once and maybe talk to a financial advisor about your specific situation.”
Peek added, “If what you’re looking for is buying the stock at a lower rate, waiting might just be the right thing for you. However, this comes with the uncertainty of missing the dip.”
