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Meta Platforms (NASDAQ: META) has seen its shares decline by approximately 65% over the past year. As of now, the stock is trading at just 11 times earnings, indicating that it may appear undervalued.
However, the company reported a 4% year-over-year decline in third-quarter revenue, alongside a 52% drop in net income. Major concerns include challenges from changes in Apple’s iOS affecting advertising and significant losses in its reality labs segment, which reported an operating loss of $9.4 billion for the first nine months of the year. Looking ahead, estimates suggest these losses will increase significantly next year.
Given the existing red flags and the company’s ongoing struggle with growth, investors are advised to remain cautious, with some analysts opting to avoid the stock altogether for the time being.
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