Mark Zuckerberg, CEO of Meta Platforms
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Wednesday just might be the day that shares of
the parent company of Facebook and Instagram, bounce off rock bottom.
Shares in the social media giant have had an abysmal time of late. Following weak quarterly earnings and a dismal outlook, Meta (ticker: FB) went into free fall last week, notching the largest one-day loss in market capitalization in U.S. history on Feb. 3, when the stock price collapsed by 26%.
As of Tuesday’s close, the shares have fallen some 42% from their all-time high in September.
Things may be looking up: Meta stock was jumping 2.7% Wednesday, outpacing buoyancy in the wider technology sector. The
which tracks some of the biggest U.S. tech stocks, rose 1.5%.
Are investors finally buying the dip? Market participants were already talking about doing just that when Meta began its nosedive last week, and this could represent a first wave of new bets on the stock.
“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,” Christopher Rossbach, the chief investment officer at Anglo-Swiss asset manager J. Stern & Co., told Barron’s.
Statistically, the stock looks cheap. Meta is trading at a multiple of 17 times this year’s expected earnings, which is a 40% discount to its peers. And that is a firmly forward-looking measure: The price-to-earnings (P/E) ratio uses a figure for profits based on consensus estimates among analysts…