Meta Platforms (NASDAQ:FB) stock has been under pressure over the past year for controversies related to its privacy policies among other issues. Still, investors shouldn’t count FB stock out just yet, as overall sentiment on Wall Street remains bullish.
First, let’s acknowledge some of the other issues the company is facing. Apart from the negative headlines it has suffered recently, it had a troublesome Q4 report that set off alarms for investors. In fact, over the last few months, we have seen several analysts downgrade FB stock.
- JPMorgan analyst Douglas Anmuth cut his rating on the stock in a move that reflects the current mood of Wall Street. Anmuth revised his rating on the tech giant to Neutral from Overweight. He also cut his target price to $284 from $385.
- BMO analyst Daniel Salmon revised his rating on Meta to Market Perform from Outperform. He also cut his price target to $290 from $323.
- Loop Capital analyst Alan Gould lowered his price target to $230 from $380.
- Mirae Asset Securities’ Yongjei Jeong slashed his target price for the stock from $403 to $356.
- Piper Sandler’s Thomas Champion cut his price target to $240 from $301. Even though the perception of strength may have declined, their rating on FB stock remains Neutral.
Despite the challenges facing FB, sentiment on Wall Street remains bullish, with a moderate buy consensus rating. TipRanks found that the average price target is $325.60 with a high forecast of $466 and a low forecast of $220. The average price target implies an upside of 45.81% over the last recorded price.
Although FB stock has been losing ground over the last few months due to the broader economic environment, it is still strong. Recent price action suggests a reversal in fortunes is around the corner. The company is rapidly shifting its focus and investing in new areas. For example, it spent $10 billion on the metaverse in 2021 alone. In the long run, these investments should pay off handsomely.
On the publication date, Faizan Farooque did not have (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.
