Why Meta Platforms Stock Is Worth Buying Despite It Being "Speculative"
Despite the strength of Meta's business, it faces an uncertain future from a growth perspective.
Why Meta Platforms Stock Is Worth Buying Despite It Being "Speculative"
Overview
One can probably forgive investors who struggle to understand the investment case for Meta Platforms (NASDAQ: META) stock. The company has built a massive ad base, given the nearly 3.6 billion people who log on to a Meta-owned app every day.
Nonetheless, that is about 43% of the world's population, meaning its user base is unlikely to grow quickly. Moreover, the social media giant earns more than 99% of its revenue from advertising. To that end, it has pledged to spend up to $145 billion this year alone to further grow its business through artificial intelligence (AI).
Details
Since that pivot is not guaranteed to succeed, Meta is arguably a "speculative" stock in that respect. Still, given its market positioning, its move could succeed; here's why.
Source
Originally published at www.fool.com.
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