Is Meta Platforms’ Business in Trouble?
From Nasdaq: 2025-05-28 04:25:00
Meta Platforms (NASDAQ: META) has seen impressive revenue growth and a soaring stock price, up 431% since the start of 2023. However, recent reports highlight significant shortcomings in the company’s business, raising concerns about regulatory vulnerabilities.
Documents reveal that Meta accounted for nearly half of all reported scams on Zelle for JPMorgan Chase account holders. An estimated 70% of new advertisers on the platform were promoting scams or low-quality products, raising questions about the company’s revenue growth and lax policies.
The potential hub for internet fraud could impact Meta’s stock performance. With a slowing growth rate and risks of tougher regulations, the company faces challenges ahead. Adverse macroeconomic conditions could further hinder its operations, potentially affecting its advertising business.
Trading at 24 times its trailing earnings, Meta’s stock may seem cheap, but uncertainties loom. Antitrust issues and a possible breakup of its business could impact its long-term prospects. With a slowing growth rate and questionable business model, investors may want to avoid this tech stock for now.
Investing $1,000 in Meta Platforms may not be the best move at the moment. The Motley Fool’s Stock Advisor team has identified 10 other stocks with potential for monster returns, steering clear of Meta Platforms. With historical outperformance compared to the S&P 500, investors may want to explore other opportunities. 1. The stock market saw a sharp decline today, with the Dow Jones Industrial Average dropping 500 points. Investors are concerned about rising inflation rates and the impact of the ongoing trade war with China.
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