Is Meta Platforms, Inc. (META) the Best Beginner Stock?

From Yahoo Finance: 2025-04-06 18:56:00

The US stock market faced turbulence in Q1 2025 due to increased volatility and negative returns. DeepSeek AI from China rivalled US software like ChatGPT, causing global investor panic. The US imposed tariffs on Chinese firms to counter DeepSeek’s impact, amidst Fed interest rate maintenance, sparking concerns about NPLs.

President Trump’s March announcement of global tariffs led to retaliatory measures from Europe and China. The US imposed 54% tariffs on Chinese goods, met with a 34% reciprocal tariff from China, causing the biggest market drop since COVID-19. This economic uncertainty has pushed the US into “continuous stagflation” with high VIX levels.

Meta Platforms, Inc. (META) launched its Meta AI chatbot in the EU despite regulatory scrutiny. Utilizing Lama series AI, META faces competition from cost-efficient Chinese rival Deepseek. META reported strong Q4 2024 earnings, with $48.39 billion revenue, surpassing estimates. With 3.35 billion DAUs and 700 million MAUs, META offers an upside potential of 50.96%.

META ranks 2nd as a beginner stock, with analysts suggesting a Buy opportunity. While META shows promise, AI stocks are touted for higher returns in a shorter time frame. Consider exploring a report on a promising AI stock trading at less than 5 times its earnings for better investment opportunities.



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