This is a step-by-step stock review to answer the question, is Meta Platforms (META) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Meta Platforms (META) stock a good buy?
- Meta company history
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Meta Platforms (META) stock a good buy?
1. Meta Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Meta, formerly known as Facebook, was founded by Mark Zuckerberg in 2004.
- The social media platform rapidly grew in popularity, reaching millions of users worldwide.
- In 2012, Facebook went public with one of the largest IPOs in tech history.
- The company continued to expand its reach by acquiring Instagram in 2012 and WhatsApp in 2014.
- In 2016, Facebook introduced its live streaming feature, Facebook Live, and acquired Oculus VR, a virtual reality company.
- In 2018, Facebook faced a major data privacy scandal involving Cambridge Analytica, leading to increased scrutiny and regulatory challenges.
- Despite controversies, the company’s financial performance remained strong, with consistent revenue growth.
- In 2019, Facebook announced its plan to unify its messaging platforms (Facebook Messenger, Instagram, and WhatsApp).
- In 2021, the company rebranded itself as Meta, reflecting its focus on building the metaverse.
- Meta aims to shape the future of social media and virtual reality, investing in AR, VR, and AI technologies.
2. MOS
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 84
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Meta makes money:
- Advertising: Meta generates revenue through advertising on its various platforms, including Facebook, Instagram, WhatsApp, and Messenger.
- Virtual reality and augmented reality: Meta sells hardware devices such as Oculus VR headsets and software applications for virtual and augmented reality experiences.
- Gaming: Meta earns money through game-related revenues on platforms like Facebook Gaming and the App Store.
- Workplace collaboration: Meta offers enterprise solutions like Workplace by Facebook, which generates revenue through subscription fees and enterprise services.
- Technical services: Meta provides technical services to businesses and developers, including cloud services, analytics, and artificial intelligence tools, which generate revenue through fees and licensing agreements.
Here are a few of the other companies that Meta has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Oculus VR
- Giphy
- CTRL-labs
- LiveRail
- FriendFeed
- Parse
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Meta stacks up against other companies.
- Meta – 84
- Baidu – 72
- Google – 67
- Opera – 67
- Taboola – 61
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founded Facebook in 2004, revolutionizing social media and connecting billions of users globally.
- Oversaw the acquisition of Instagram in 2012, expanding Facebook’s reach and user base significantly.
- Led the acquisition of WhatsApp in 2014, further solidifying Facebook’s presence in the messaging app market.
- Successfully took Facebook public in 2012 with one of the largest tech IPOs in history.
- Introduced innovative features like Facebook Live in 2016, enhancing user engagement on the platform.
- Acquired Oculus VR in 2014, positioning Facebook as a major player in the virtual reality industry.
- Succeeded in maintaining consistent revenue growth and financial performance for the company.
- Announced the plan to integrate messaging platforms (Messenger, Instagram, WhatsApp) in 2019, aiming to create a more connected ecosystem.
- Oversaw the rebranding of Facebook to Meta in 2021, signaling a shift towards building the metaverse.
- Spearheaded investments in augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) technologies to shape the future of social media and technology.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Meta Platforms is 82/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Meta Platforms (META) stock a good buy?
Some of the top questions investors can have is Meta Platforms (META) stock a good buy or should I buy Meta Platforms (META) stock?
As of today, Facebook remains a strong investment option due to its vast reach, advertising capabilities, and strong financial performance. With over 2.8 billion monthly active users, Facebook offers unparalleled access to a wide audience for businesses looking to expand their reach and connect with potential customers. The platform’s robust advertising tools allow companies to target specific demographics, interests, and behaviors, providing a highly effective way to drive engagement and increase sales.
Moreover, Facebook’s financial performance has been consistently strong, with the company reporting strong revenue growth year after year. In addition to its core platform, Facebook also owns other popular social media platforms like Instagram and WhatsApp, providing further diversification and growth opportunities.
However, recent controversies surrounding data privacy and misinformation on the platform have led to concerns among investors. These issues have raised questions about Facebook’s long-term sustainability and may impact its reputation among users and advertisers. Additionally, increasing competition from other social media platforms like TikTok and Snapchat poses a potential threat to Facebook’s dominance in the social media space.
While Facebook currently offers strong growth potential and advertising opportunities, investors should carefully consider the risks associated with the platform’s ongoing challenges and competition. Conducting thorough research and monitoring industry trends will be crucial in determining whether Facebook remains a good investment choice in the long run.
To truly know if Meta is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on Google.