Meta Platforms (NASDAQ:FB), formerly known as Facebook, is in the midst of a virtual free fall. The tech-forward metaverse company has lost nearly a quarter of its value today following a disastrous earnings report. Indeed, FB stock is currently down almost 25% today, at the time of writing. Meta Platforms price predictions are in full swing as some investors ponder whether today’s fire sale is worth getting in on.
So, what’s going on with FB stock today?
It seems investors are abandoning Meta en masse today after its Q4 earnings call yesterday. In the earnings report, the company revealed substantially slowed growth for daily active Facebook users. In fact, Meta reported losing roughly half a million users in the last three months of 2021. Citing concerns with a new Apple (NASDAQ:AAPL) privacy policy and the growing market threat of apps like TikTok, this marks the first time Meta has ever reported a loss in daily users in the company’s 19-year history.
Known for its growth, some view Meta’s latest report as a sign to jump off a sinking ship. This comes despite a relatively strong earnings report otherwise. Meta-owned properties like WhatsApp, Messenger and Instagram reported modest growth, as Meta itself made out nearly $40 billion in profit last year, mostly from ads.
As the company makes its bold transition to the metaverse, some hiccups might be expected along the way. Chief Executive of Meta Mark Zuckerberg has repeatedly stressed the importance of the virtual reality projects the company is working on as instrumental for its long-term vision. This is perhaps unsurprising, given that the company put more than $10 billion into research and development for its Reality Labs VR division last year.
Amid today’s major discount, the question on everyone’s mind remains: Is FB stock a buy right now?
Meta Platforms Price Predictions: Is FB Stock a Buy?
- According to TipRanks’ 23-analyst panel, the answer is definitely. They set an average 12-month price target of $336 per share, representing 37% upside from its current $245. It should be noted that the low end of the analysts’ estimates has Meta dropping even further to $230 per share, compared to $425 on the higher end.
- CNN Business views Meta in a similarly optimistic light. Of the 45 analysts polled on FB stock, 33 rated the company as a buy or outperform, while 11 gave the company a hold rating. This translates to a median 12-month price target of $350 per share, representing nearly 44% upside.
- According to Wallet Investor, FB remains a standout buy. The site set a one-year forecast of $389 per share, and a five-year price target of $707.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
