Few companies in the history of the stock market have undergone as dramatic of an implosion as Meta Platforms (NASDAQ: META), the parent of Facebook and Instagram. In a little more than a year, Meta has gone from a fast-growing, highly profitable and dominant social media advertising machine to a business in the middle of a questionable pivot to the metaverse whose core social media enterprise is suddenly unraveling. With that sell-off comes a potential opportunity as Meta shares certainly look cheap according to conventional metrics.
The metaverse was a hot topic last year, but the hype has largely fizzled out now that virtually every metaverse stock got hammered throughout 2022. Meta stubbed its toe on some short-term challenges, but there are at least three reasons why the stock could still deliver 25% investment returns in 2023. Most investors are fixated on Meta's metaverse ambitions, but the Family of Apps segment that houses Facebook, Instagram, and WhatsApp is still what butters Meta's bread.
Two historically high-growth stocks are cheaper than ever and ripe for the picking, while another longtime winner is expensive and entirely avoidable.