A large number of analysts are predicting that Meta’s earnings over 2023 could be on the rise, with its price forecasts being improved across the board. One Morgan Stanley analyst even stated that Meta would be the most durable mega cap company in the event that consumer spending slips further than it has.
Since the start of the year, Meta has been one of the biggest rebound tech stocks after the market selloff last year – logging a 74% gain YTD. As a result, some investors might be thinking they’ve missed an opportunity to make the most of the stock’s resurgence.
Meta’s comeback
2022 was a year to forget for the FAANG stock. Over the course of last year, the tech giant’s shares saw a price drop of over 60% and economic headwinds put pressure on the company, and investors began to question whether the company’s metaverse rebrand was the correct approach. 2023 however seems to be fostering renewed optimism for the owner of Facebook and WhatsApp, with analysts improving their predictions for its future.
What’s made the outlook so positive?
Experts are predicting that Meta’s price cuts will have a significantly beneficial effect on the company’s profitability. Predictions for its sales growth are now marked at 4.7%, with 2024 expected to be the year the company makes its way closer to its previous market highs.
It’s not just Meta that’s been enjoying the upswing of the tech market this year. The Nasdaq index has already seen a 18.68% rally since the start of the year. While Meta’s share price may have dipped in 2022, analysts are reminding investors that this is a long-term growth story.
