Is Meta Platforms stock worth buying now?

along with Nasdaq Resonanceindices (Nasdaq Composite) in With a handful of major tech stocks driving the market to new highs, investors may be wondering if there are any good trades in the market today. I'm here to tell you that there are some solid opportunities.

Meta Platforms (NASDAQ resonance stock code: META) It's one of them. The Over the past 18 months. This one. Social Media Professional Corporation's stock price has risen by 277%. even so, it is still a stock to consider in your investment portfolio. Here is why.

Unparalleled Storytelling

With 3.98 billion monthly active users across its family of apps, including Facebook, Messenger, WhatsApp and Instagram, Meta has a unique reach. From the perspective of this user base, nearly half of the world's population uses Meta services at least once a month.

Since these apps are free to use, the majority of Meta's revenue (which will reach $98% in 2023) comes from digital ads. The downside is that ad sales can be cyclical, as we'll see during the recession in 2022, but the upside is that ad sales can be highly profitable. In the fourth quarter(math.) genusThe company's family of apps publishes Operating profit marginGundam54% The

Even better, these social media apps don't require Meta to create the content - the company simply provides the platform for the users. This creates a powerful networking effect: people want to use the same social media applications that all their friends and family are using.

As more users join and more content is shared, Meta's service will get better and better. This leads me to believe that the company's competitive moat will protect it from subversion and lead to long-term success.

Focus on Innovation

The hottest topic these days is Artificial Intelligence (AI), with companies looking to be at the forefront of this revolutionary technology. Investors want to find a winner as soon as possible, but theIt's best not to overthink it. Companies that are already leaders in technology and the Internet, such as Meta, will benefit.

The company has introduced artificial intelligence features in its app lineup to boost user performance. And for advertisers, Meta has rounded up the name Artificial Intelligence Generation tools to save time and improve results. Over time, this will enable the company to charge higher advertising prices, especially given Meta's unrivaled ability to target audiences on the move.

In addition, Meta's "metaverse" ambitions are being realized through the efforts of Reality Labs, which is developing a variety of augmented and virtual reality projects that CEO Mark Zuckerberg believes will help create a new computing platform. The company's chief executive Mark Zuckerberg believes that these projects will help create a new computing platform. The division loses billions of dollars every quarter, but if all goes well, it could one day become a huge moneymaker.

Valuation of the person

At the end of 2022, investors were tempted to buy Meta stock where the forward price/earnings ratio (P/E) was only 10. In the meantime, they're unhappy with slowing ad growth and margin compression, while losses in the real-estate department are soaring.

However, even as Meta's stock price has soared over the past year and a half, its valuation remains compelling. The current forward P/E of 26 is a reasonable entry point for the company given the scale and impact of its social media applications, its large online presence, and its focus on artificial intelligence.

As the stock market continues to make new all-time highs, there are still some attractive opportunities, and Meta falls into this category.

Should you invest $1,000 in Meta Platforms now?

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Randi Zuckerberg, former Facebook Market Development Arbitrator and Spokeswoman, and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's Board of Directors. Neil Patel and his clients have no position in any of the stocks mentioned above, and The Motley Fool holds a recommendation for Meta Platforms. The Motley Fool has a disclosure policy.

Is Meta Platforms Stock a Buy Now? This post was originally published by The Motley Fool.