Meta's Shares Are a Hard Sell as Good Old Facebook Days Are Over
- Stock is among biggest decliners in tech sector this year
- Bulls eye cheap valuation, expense cuts, growth revival
Meta headquarters in Menlo Park, California.
Photographer: Nick Otto/BloombergThis article is for subscribers only.
In most market environments, a company with one of the lowest valuations in the Nasdaq 100 Index, a solid balance sheet and sales growth averaging 34% a year would be an obvious buy. In the case of Meta Platforms Inc., it’s not so obvious.
Since Mark Zuckerberg’s announcement a year ago of a name change and strategy overhaul for the owner of Facebook, the stock has wiped out more than half the gain it had seen since its initial public offering a decade ago. That’s cost Meta $600 billion in market value and a spot in the elite club of the US’s 10 biggest companies.