Meta Platforms (NASDAQ:FB) stock lost more than a quarter (26.6% to be precise) of its value following the lower-than-expected reported Q4 earnings, a slowdown in user growth rate, and weak guidance.
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So does this massive price drop indicate that Meta stock is too cheap to ignore?
Analysts Weigh In
In response to Meta Platforms’ Q4 earnings and the recent drop in its price, Rohit Kulkarni of MK Partners stated that Meta stock is trading at a forward earnings multiple of 14.3. Kulkarni added that Meta stock bottomed at roughly 14 times its forward earnings multiple back in 2018.
This simply implies that the analyst sees Meta stock bottoming out. Kulkarni maintains a Buy rating on Meta stock but lowered his price target to $365 from $395, citing headwinds related to Apple’s (NASDAQ: AAPL) privacy changes and mix shift towards short-form videos, which are monetized at a lower rate amid increasing competition.
While Kulkarni sees Meta stock bottoming out, Brian White of Monness views this drop as a buying opportunity.
White expects Meta Platforms to “benefit from the long-term digital ad trend, participate in accelerated digital transformation, and innovate in the metaverse.” However, White cut his price target to $375 from $460, citing near-term advertising headwinds and ongoing regulatory scrutiny.
While Kulkarni and White maintain their bullish outlooks, Argus Research analyst Joseph Bonner downgraded Meta Platforms stock to a Hold and lowered his 2022 earnings estimate due to Apple’s iOS privacy changes and increased competition from TikTok.
It’s worth noting that during the Q4 conference call, Meta’s management stated that Apple’s iOS privacy changes could have a $10 billion negative impact on its financials in 2022.
Wall Street’s Take
Due to the near-term headwinds, Wall Street maintains a cautiously optimistic outlook on Meta Platforms stock. On TipRanks, Meta Platforms has a Moderate Buy consensus rating based on 31 Buy, 10 Hold, and 1 Sell recommendations.
Further, the average Meta Platforms price target of $330.35 implies 39.3% upside potential to current levels.

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