With the market going down substantially in 2022, Meta Platforms (NASDAQ: META) has followed suit, continuing to hit new lows. Besides the general macro trends being negative, the company had a self-inflicted weaker-than-expected Q1 earnings report, leading the stock price lower.
Meanwhile, the Managing Director of Cleo Capital, Sarah Kunst, joined CNBC’s Squawk Box to discuss the investment environment with a specific interest in the META stock. Namely, Kunst sees the stock as a potential value play due to the high losses it has seen in 2022.
“META lost half of its market value this year. So if you like Meta, you should buy META, because this is a great time to buy it. It is now being seen as a value stock, alongside some of these other ones, and that is pretty unprecedented from what we’ve seen in the last few years of these tech stocks.”
“With META, in particular, there are crazy leadership shakeups, long-time COO Sheryl Sandberg left, you know, they’re done with their crypto product, they’re done with, last night it was announced, their peer-to-peer wallet product. It’s kind of having this ‘work hard or leave’ Elon Musk style gauntlet thrown moment.”
META chart and analysis
In short, the stock is trading below all daily Simple Moving Averages (SMAs), with the trading range remaining between $170 and $151. No significant trading volume has been seen, possibly indicating that the shares will continue to trade sideways.
Meanwhile, TipRanks analysts rate the shares a moderate buy, predicting that in the next 12 months, the average price will be $264.86, which is 65.61% higher than the current trading price of $160.03.
Speaking on the number of engineers the company is looking to employ, which is less than initially expected, Kunst explains that if investors believe in Zuckerberg’s vision, then the investment thesis is quite clear cut.
“I think right now Meta is a Rorschach test for how you feel about Mark Zuckerberg. If you believe in the bets that he says he is still making in the Metaverse, in the head-set that they still want to launch, and you believe that it will somehow drive ad sales and revenue dollars. Then you should be excited about the fact that he is hiring still a lot of engineers.”
Despite the stock price dipping, it seems that Zuckerberg is driving his vision forward for the next stage of the evolution of his company.
Therefore, investors who have faith in the vision and see META as the market leader in this new age of the internet may be able to gain a strong entry position in the company at the current price point.
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