New Delhi: There has been a huge jump in the shares of Meta Share, the parent company of Facebook. After falling 65 percent in the year 2022, now meta stock is taking a tremendous boom. From 4 November 2022 till now it has climbed 170 percent. Out of 55 analysts tracking the company’s stock, 40 have a buy rating on the stock. Due to the increase in the number of daily active users and the reduction in expenses by the company, the confidence of investors has returned to Meta and they are investing heavily in this stock.
Amidst fears of the US banking crisis not ending and recession, the rise in Meta Stock is surprising everyone. The conditions for Meta started getting challenging in the October-December quarter of 2021. In this quarter, for the first time in history, the number of daily active users of Meta decreased. The company had lost the number 10 lakh, daily active users. As soon as this news came to the fore, Meta’s shares then fell 25 percent in a single trading session. The market value of the company had decreased by $ 200 billion in a single day.
Crisis continues till November 2022
The decline in Meta’s shares continued till November 2022. On November 4, the company’s stock touched its 52-week low of $88.09. In the year 2022, there was a decline of 65 percent in the Meta stock. But, after 4 November, stability was visible in the stock. In the year 2023, the price of meta share has doubled so far. At the same time, this stock has climbed 170 percent in the last five months. On Thursday too, there was a 15 percent rally in Meta shares and it reached $241.
Increase in advertising revenue
Several factors are behind this tremendous jump in Meta’s stock. Meta’s advertising revenue has increased. Meta’s first-quarter profit and earnings exceeded Wall Street’s expectations. The number of monthly users of its major platform Facebook has also reached nearly 3 billion. The company’s revenue rose three percent to $28.65 billion, compared to $27.91 billion in the same period a year ago.
Increase in daily users
Meta paid more attention to this after the number of daily users declined in the October-December quarter of 2021. As a result of this, the number of monthly users of the company has crossed 3 billion in the March 2023 quarter.
Cheaper than pears
Even after the tremendous growth in the year 2023, Meta’s stock is cheaper than its competitors – Apple, Amazon, Netflix and Alphabet.
Increased confidence in brokerage
Brokerage’s trust in Meta Shares has also increased. Of the 55 analysts tracking Meta Shares, 72 percent have recommended investors add the stock to their portfolios. Many analysts have expressed the hope of reaching $ 300 for this stock.
