Meta: I Missed The Boat But Still Hesitant To Jump In Now (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Meta has been a major miss for me as the stock has generated +187% over the past ~1.5 years. Yet, I am still hesitant to buy now.
• Meta is facing a slowdown in advertising impressions amid a competitive advertising environment. These headwinds are expected to result in a challenging YoY growth stats in H1 FY25.
• Meta may have to deal with a more scrutinizing FTC Chairman, who has a more hard line stance against big tech media companies and their content management decisions.
• META stock valuations are at a small 8.6% discount vs historical levels. But the relative technicals suggest buyer exhaustion and downside potential ahead.
• TikTok is due to get banned in the US in early Jan'25, but is making an appeal a few days before the case. This is a relevant monitorable for Meta, who stands to gain from an easier competitive ads environment if its competitor is barred from operating in the US.

Read the full article here.