Meta Platforms (META) is a member of the Magnificent Seven and known for its social media sites such as Facebook and Instagram. While the stock has generated strong returns for shareholders over the past year, its momentum has waned in the last six months, leading to the share price stagnating. The loss of momentum comes even though Meta has demonstrated that its AI investments are beginning to pay off. Despite the stock losing some steam, I remain bullish on Meta Platforms because of the company’s strong position in AI, competitive moat, and cash balance.
Meta’s Momentum
Meta’s waning momentum hasn’t deterred my bullish outlook for the company and its stock. Despite falling from its peak this spring, META stock is up 45% on the year. The technology giant’s shares have traded near $530 on three occasions since April. But each time, the share price has fallen back to the $500 mark and remains rangebound.
