It’s no secret that Meta Platforms (NASDAQ:META) is in the crosshairs of regulators on more than one continent. Furthermore, META stock hasn’t broken through $400 yet, even though this should have happened by now. Just hang in there, though, as Meta Platforms won’t let you down if you just stay in the trade.
I understand people’s frustration. If Meta Platforms is a “Magnificent Seven” company, why did the share price stay flat for so long? Starting in late July, Meta Platforms’ investors waited several months for a big breakout that didn’t happen.
However, I encourage META stockholders to relax and hang in there. Meta Platforms is working diligently to improve its products and services and should continue to provide long-term value for the users as well as the shareholders.
Meta Platforms Improves Its Apps and Reputation
Unfortunately, Meta Platforms doesn’t have a sterling reputation among some of its users. The company hasn’t always been viewed as responsible in handling its users’ personal information. Also, Meta’s apps may have allowed postings with questionable content.
On the other hand, Meta Platforms is working to change this. For example, Meta is stepping up its efforts to restrict inappropriate content on Facebook and Instagram related to the Israel-Hamas war. These efforts should help to placate regulators, earn the trust of the users and rebuild Meta Platforms’ reputation.
Moreover, Meta Platforms now allows its users to access, download and manage their personal information across the company’s apps. Specifically, users can “review the businesses that are sharing data with Meta, disconnect specific ones to further personalize your experience, or clear this data entirely.”
This can all be done through Meta Platforms’ Accounts Center. It’s a big step in the right direction for Meta, and hopefully other social media companies will follow Meta Platforms’ lead.
META Stock Could Stage a Year-End Rally
Here’s a rhyme that’s easy to remember: Patience is the key in 2023. Sure, META stock went nowhere from late July to mid-October. But then, consider how fast and far the stock went during the first half of the year.
Even a “Magnificent Seven” company like Meta Platforms has to take a breather sometimes and allow the shareholders to digest their gains. I know it’s frustrating since Meta Platforms doesn’t pay a dividend, but I want to encourage you to stay in the trade.
After all, you’ll have a stake in a true giant among global social media companies. Even TikTok, the app that seems to have captured the attention of young people everywhere, can’t compete with Meta Platforms in certain respects.
There’s actually data to prove this point. According to research conducted by Launchmetrics (via WWD), Instagram “remains the most influential social media platform for brands,” even beating TikTok in this category.
Reportedly, Launchmetrics “analyzed the performance of 3,500 brands” and found that Instagram controls a 57.7% “share of social brand reach.” In second place is another Meta Platforms app, Facebook, with a 11.7% share.
TikTok wasn’t even close, with its measly 6.6% share. In other words, millions of kids and teens might use TikTok for a few minutes at a time, but this doesn’t necessarily translate to good performance for brands on the platform.
The Gains Will Come With META Stock
Meta Platforms’ investors already enjoyed a share-price rally in 2023’s first half. The second half of the year wasn’t as enjoyable, however. But then, that’s par for the course and again, patience is the key that unlocks long-term gains.
Meta Platforms is working to improve its apps and it reputation, as well. Plus, the company is still a top performer for brands among the world’s social media platforms. Consequently, I encourage you to continue holding META stock as the next big rally could be right around the corner.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
