Mark Zuckerberg’s Bet
Meta is the latest company to take a ride on the Wall Street roller coaster. After a horrendous year in 2022 with shares trading down 65%, Meta turned heads last week with the stock popping 25% after reporting earnings. The wild swings left observers scratching their heads as to what may have changed. How could a company considered by some to be fatally wounded see its shares more than double in just three months?
Year to date, the best-performing stocks in tech are those that struggled the most last year. Peloton has doubled in share price in just a few weeks. Spotify is up 80%. Roku up 60%. Market participants, represented by many different viewpoints and perspectives, are betting on a turnaround even if consensus isn’t quite sure what a turnaround will look like. Instead, it’s simply assumed to be better than what things were.
As we discussed three months earlier, the market was valuing Meta as having about a decade of life remaining.
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