From Nasdaq: 2025-04-17 15:00:00

Meta Platforms shares have dropped 13.7% in the past month, underperforming the Internet Software industry and Computer & Technology sector due to challenging macroeconomic conditions. President Trump’s tariffs on trade partners like China, Mexico, and Canada have negatively impacted technology stocks, including Meta Platforms, Alphabet, and Amazon.

Meta Platforms leverages AI to boost advertising revenues with a focus on improving user engagement. META has a trove of data from its 3.35 billion daily users, with AI usage increasing and initiatives to deliver more personalized responses. META’s decision to loosen content monitoring and focus on social commerce through Facebook, Instagram, and WhatsApp are notable.

The Zacks Consensus Estimate for Meta Platforms’ first-quarter 2025 earnings is $5.22 per share, indicating a 10.83% year-over-year increase. Despite beating estimates in the past, the stock is trading at a premium, with a Value Score of C and a forward 12-month Price/Sales ratio higher than the sector’s median.

Investors should wait for a more favorable point to accumulate Meta Platforms stock as regulatory concerns, tariffs, and heavy spending on AI infrastructure pose risks. The company’s first-quarter results are expected to suffer from unfavorable forex, and operating expenses are projected to increase. Despite potential long-term benefits, lack of monetization on new platforms like Threads is a concern.

Meta Platforms currently has a Zacks Rank #3 (Hold), indicating caution. Investors can access all Zacks picks for $1, with thousands taking advantage of this offer. The company offers various portfolio services like Surprise Trader and Technology Innovators, which had significant gains in 2024.



Read more at Nasdaq: Meta Platforms Dips 14% in a Month: Buy, Sell or Hold the Stock?