‘Meta's Cheap Stock Is an Investor Trap'
The Wall Street Journal's Heard on the Street Column:
"Meta shares look like a stock-markeet steal. But their bargain basement price is more of warning about its uncertain prospects than an opportunity for investors."
Bullish Points for Meta:
1. Less expensive valuation than peers at 18x forward P/E
2. Premium for Alphabet against Meta highest since 2022
3. NVDIA's Jensen Huang on 2/6: nobody uses AI better than Meta
Bearish Case for Meta:
1. User growth is positive but slowing
2. They don't have a cloud business like Google, AWS or Azure
3. Will their spending pay off? More questions than answers
