Why Meta Platforms Might Be a Good Buy Right Now
Regulatory and spending challenges shouldn't scare away investors.
Why Meta Platforms Might Be a Good Buy Right Now
Overview
Meta Platforms (NASDAQ: META) is dealing with a lot of pressure right now. The social media giant's stock is down more than 13% as of June 10, largely due to mounting regulatory issues and investors' growing skepticism about spending on artificial intelligence (AI). But long-term investors willing to look past recent turbulence may find that Meta is a worthy buy right now, given its low price.
This isn't meant to discount the very real challenges Meta faces at the moment. Particularly in Europe, regulators are enforcing the Digital Markets Act, which threatens Meta's margins with fines and changes to data policies.
Details
On the spending side, Meta founder and CEO Mark Zuckerberg is committed to his AI infrastructure plan. Capital expenditures are substantial and perhaps hard to justify. After the failure of his Metaverse initiatives, investors and analysts are a bit more skeptical for good reason.
Source
Originally published at www.fool.com.
