Lately, it’s like meta platform (NASDAQ:Meta) can never be stopped. But no company, even a member of the Magnificent Seven, can grow forever without slowing down. Long term, I stand by his bullish analysis of META stock. However, successfully investing in Meta Platforms means having a strategy and only buying in the right price range.
Indeed, Metaplatform is making strides in the field of social media and artificial intelligence technology. However, meta platforms must contend with relentless competition and powerful regulators in multiple countries. So after Metaplatform stock’s relentless rise, it’s time to exercise caution in the short term, even if you’re a buy-and-hold investor.
Is META stock dividend really a game changer?
That can’t be denied. The market erupted with excitement when Meta Platforms announced its upcoming first-ever dividend payment. However, now I feel that its charm is waning.
It’s hard to stay excited about a quarterly dividend payment of 50 cents per share when the stock price is approaching $500. On a percentage basis, Meta Platforms’ dividend is negligible.
Meanwhile, some traders are impressed by Metaplatforms’ announcement that it will increase its share buyback program by $50 billion. But don’t get so impressed that you overlook the problems with the meta platform.
For example, Meta Platforms has a strong competitor in the form of ChatGPT developers. OpenAI, the field of AI technology. A while back, OpenAI announced a new text-to-video AI tool known as Sora.
Macquarie analyst Frederic Havemeyer praised Sola as follows:
“With this announcement of a model capable of producing crisp 60-second videos, OpenAI once again demonstrates that our in-house product development is pushing the limits and that our releases tend to set new cutting-edge standards. Ta.”
Importantly, Meta Platforms can never relax and coast to fruition in the AI market. After 2024, OpenAI and other competitors could threaten to leapfrog the meta platform at any time.
Metaplatform targeted by regulators
Another major hurdle for Metaplatform is the outrage of regulators in the United States and abroad. This pullback could be very costly for Metaplatform, and is something investors should consider.
For example, New York City Mayor Eric Adams accused the company’s Facebook and Instagram social media platforms of “deliberately manipulating and addicting children and teens to social media applications.” He is suing Metaplatforms.
Meanwhile, in a move that could impact the Meta platform at some point, a group of U.S. senators is calling on the U.S. Food and Drug Administration to “take action against the sale of prescription drugs on social media.” It was reported. wall street journal.
Additionally, in Europe, a group of 28 organizations is asking privacy regulators to oppose Meta Platforms’ ad-free subscription service. Furthermore, according to some, Reuters According to reports, Facebook faces a “class action lawsuit” worth around 3 billion pounds ($3.77 billion). The lawsuit is based on allegations that Facebook “abused its dominant position” to monetize users’ personal data.
META stock analysis: Stay long but don’t add too quickly
Despite the aforementioned concerns, my META stock analysis shows no need to panic and sell the stock. If you already have a stock position in Metaplatform, you can stay for longer.
On the other hand, there is no need to rush to add to your stock position now. It would be wise to wait and see how the metaplatform issue develops.
Metaplatforms almost certainly overcome these problems, but they are not without conflicts and costs. So, if you want to be cautious, you can wait until META stock drops below $425 before adding to your stock position.
Publication date, David Mordell did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
