Meta Platforms Inc.

The recent years were hard for the parent company of Facebook, yet the future is not very much brighter. Advert spending is expected to be strictly controlled and therefore consensus estimates may still be elevated. We expect that top-line growth at its core advertising business will be lower going into 2024 while at the same time higher operational costs tied to its Reality Labs segment, which is developing AR/VR hardware and software, will weigh on the overall results. The future of Meta and its AR/VR concept is certainly good, but GTM and the turnaround will require much more time. Only patient investors should consider the stock for now.