From Nasdaq: 2025-04-13 23:37:00

Investing in Meta stock (NASDAQ: META) at 23 times earnings over Google stock (NASDAQ: GOOG) at 20 times may be justified due to Meta’s higher revenue growth of over 20% compared to Google’s 14%. Meta also boasts a profit margin over 42%, translating more revenue growth into profits for shareholders.

Despite Meta’s recent price correction, dropping from $740 to $500, it remains a risky investment. During market shocks like the 2022 inflation shock, META plummeted over 75%. However, for long-term investors, Meta’s unique position in AI development and deployment could offer potential gains in the burgeoning AI market.

Investors should consider potential risks such as Meta’s earnings disappointing or growth slowing to 15%. Economic conditions may lead companies to reduce advertising spending, impacting Meta’s revenue. Despite risks, a long-term horizon of 3-5 years could yield gains in the AI market. Strategies like the Trefis Reinforced Value Portfolio may help navigate market volatility.



Read more at Nasdaq: Why Meta Stock Is the Smarter Buy Than Google