After experiencing a historic downslide, Meta Platforms’ stock is slowly rising once again.
Following the company’s release of disappointing quarterly earnings and an even more disheartening outlook, Meta’s stocks plummeted and gained the title of the largest single-day loss in market capitalization in US history.
However, this week, Meta’s stock grew by 2.7%, outpacing others within the technology industry.
“We have a significant position in Facebook, and we think it’s a great opportunity for long-term investors to buy a great franchise that has sold off on very short-term considerations,” said Christopher Rossbach, chief investment officer at asset manager J. Stern & Co.
This makes sense in the world of stock trading: Meta’s shares are at a 40% discount for its peers and its price-to-earnings ratio fell after its report.
Some analysts are now optimistic about Meta’s outlook, with the average target price among brokers sitting at $329.28, a 50% rise from Tuesday’s closing level and 2% higher than its stock just before its plummet.
Whether investing into the company is lucrative remains up for debate as the firm has yet to see a substantial rebound, indicating that some investors are still skeptical of Meta.
Still, proponents of Meta believe that the company’s challenges are short term and won’t impact its standing in the future.
“If you look at the underlying numbers that they’ve delivered, they’re still extremely strong. I think the platform has lots of levers across all three of its major applications to be able to continue to deliver value for its users,” said Rossbach.