Week in and week out, Meta Platforms (NASDAQ:META) stock is constantly in the financial headlines.
Sometimes, the news is controversial, but this isn’t a reason to give up on META stock. Instead, I recommend getting used to the chatter and buzz, and simply stay invested in Meta Platforms.
If you’re already invested, I encourage you to hold your Meta Platforms shares for at least a year. The positive and negative news items will come and go, but Meta Platforms will still be here with leading-edge tech products and services.
Possible Worries About META Stock
If you look hard enough, you can always come up with an excuse to sell META stock. For example, Meta Platforms has been the subject of regulatory scrutiny in Europe because of privacy concerns.
That’s been true all year long, yet the Meta Platforms share price is up substantially year-to-date. Besides, Meta Platforms and CEO Mark Zuckerberg are apparently willing to “play ball” to appease European regulators.
In one example of this, the company is deprecating the controversial Facebook News tab/feature in in the United Kingdom, France and Germany.
Meta Platforms is reportedly considering versions of Facebook and Instagram in the European Union that would have no advertisements at all. Users would have to pay for the ad-free versions of the apps.
Yet, this solution could help Meta Platforms avoid regulatory scrutiny over advertising practices and privacy issues.
In addition, some traders might be concerned about a report/rumor that Meta Platforms may launch a $2,000 virtual reality headset in 2025, as well as a $200 headset in 2024. This isn’t fully confirmed yet.
It wouldn’t be a terrible thing for Meta Platforms to offer a wide range of VR headset prices. Some folks insist on owning high-end VR gear, while others can’t afford a $2,000 headset.
Investors should wait and see what happens instead of losing sleep over unconfirmed reports.
Meta Platforms and the X/Twitter Threat
Then there’s Meta Platforms’s short-form posting app, known as Threads. Worry warts might panic-sell their META shares because they heard users will soon be able to use Elon Musk’s X (formerly Twitter) to make video and audio calls.
I’m not freaking out about this, and apparently neither is Jefferies Senior Analyst Brent Thill. He assured Meta Platforms’ competing platform is “sticky,” and added, “I think the market is big enough. I think users go to the platforms for different reasons.”
Even if users won’t use Threads to make video or audio calls, they can still communicate with their friends and family members through Instagram, Facebook and WhatsApp (which is also owned by Meta Platforms). Indeed, people have been making video calls on WhatsApp for years.
Some doubters are quick to write off Threads as a latecomer. However, betting against Meta Platforms and Zuckerberg has been the wrong move in 2023 so far.
I say, give Threads a chance to grow, and in due time we’ll see if X will be a real threat to Meta Platforms.
Buy META Stock and Hold It Through 2024 at Least
I concur that the market is big enough for Meta Platforms and its rivals. I fully expect both X and Threads to generate significant revenue over the coming years.
So, give Meta Platforms some time to work out the kinks in Threads and its VR headsets. There will be growing pains, but that’s the name of the game in next-generation technology.
I recommend buying META stock for the long haul. Hold your Meta shares for at least 12 months—and perhaps even two to five years—before you even consider taking profits.
On the date of publication, David Moadel 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.
