Meta Stock Is Getting Hit Hard. But Where Will It Be in 3 Years?
Written by Daniel Sparks for The Motley Fool -> The company's first-quarter advertising revenue grew 33% year over year. Meta plans to spend up to $145 billion on capital expenditures this year, nearly double last year's total. Whether that spending pays off will largely decid
The company's first-quarter advertising revenue grew 33% year over year.
Meta plans to spend up to $145 billion on capital expenditures this year, nearly double last year's total.
Whether that spending pays off will largely decide where the stock trades three years from now.
Shares of Meta Platforms (NASDAQ: META) sit about 25% below their all-time high reached last August, a slide that has left the social media giant lagging most of its big tech peers, even after clawing back from a late-March low. And it has happened while the underlying business is, by most measures, speeding up.
The latest pressure on the stock came on Friday, when reports surfaced that the tech company was considering raising tens of billions of dollars through a stock offering to help fund its AI build-out.
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Whatever happens with this potential equity sale, the gap between a fast-growing company and a stock that can't seem to get traction raises a question for investors: Is this discrepancy between the stock's performance and the underlying business a buying opportunity?
To assess the stock's potential, let's look at it in this frame: where could Meta be three years from now?
