Potential for monetizing its Reels short-video features.Improvements in measuring the effectiveness of ads on its platforms.Mogharabi lists three developments that bode well for Meta stock: Meta trades at 9.4 times 2023 consensus adjusted estimates for enterprise value to EBITDA, and 8.1 times 2024 estimates, well below the 12 times 2023 and 10 times 2024 estimates on which Mogharabi’s fair value estimate is based. “Despite the runup, there’s still more upside,” says Ali Mogharabi, Morningstar senior equity analyst for media and telecom, noting the stock trades at a 20% discount to the fair value estimate of US$260 per share he has maintained on Meta stock since it reached seven-year lows last fall. Facebook is the largest social network in the world, with nearly 3 billion active users. Meta is the social media company formerly known as Facebook it also owns the Instagram platform and instant messaging networks WhatsApp and Messenger. company, users and content creators could move to other platforms, including Meta, bringing advertisers with them. Amid threats of banning TikTok in the United States, or selling its U.S.
Rival TikTok’s woes also could wind up being Meta’s gain. That’s critical because digital advertising composes about 90% of Meta’s revenue. Improvements in Meta’s ability to measure the effectiveness of ads that run on its platforms should also help boost revenue. Around its current price of US$213 per share, Meta stock continues to be attractively valued, some say, especially with its new focus on keeping costs down.
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