![]() ![]() The company has also experienced some moderate hiccups lately. This could result in a pullback for shares. With the legal challenges mentioned above, this excitement is likely waning. Excitement about a possible ban may have played a role in the stock’s continued rise in price this month. Having said all of this, keep in mind that shares could be vulnerable to some near-term volatility. These numerous catalysts are likely more than sufficient to drive increased profitability, and in turn, further solid gains ahead for the stock. With so much in its corner, META doesn’t need a TikTok ban to stay a long-term winner. ![]() This feature could also help contribute to Meta’s fiscal performance as soon as next year. Third, while TikTok may be here to stay in the U.S., Meta Platforms’ Reels feature is helping to mitigate this competitive threat. ![]() Second, the company’s efforts in AI and the metaverse could ultimately translate into revenue and earnings growth. Cost savings resulting from its still-ongoing layoffs are only beginning to have an impact on the bottom line.ĭon’t forget, too, that a rebound in digital advertising demand is also starting to take shape. This is especially the case, as there are three other catalysts in play stand to send this stock to higher prices.įirst, there’s a strong chance that Meta’s profitability continues to improve over the next year. Still, it’s best not to waste time daydreaming about this “what if?” scenario playing out. This would cause a massive boost to revenue and earnings for the company’s two main platforms. Eliminating this competition would lead to increased users, and increased engagement. social media market, it’s an understatement to say that banning TikTok would get measurable results for META stock. Federal-level ban on TikTok? Even as there is support for a ban from leaders of both major political parties, experts have argued that a federal ban is a non-starter, for many reasons. It could discourage other states from trying to implement their own state-level bans. This argument alone may be enough to get a judge to rule in TikTok’s favor. One of their key arguments is that Montana doesn’t have the power to implement this ban, since it affects interstate commerce. Since the Montana ban was signed into law, TikTok creators, as well as the app’s owner itself, have sued the Treasure State. Instead, this is more likely a no-shot catalyst for META stock. Forget about this being a potential long-shot catalyst. That said, considering the latest developments surrounding the ban, I’m having second thoughts. In a nutshell, I argued that, while not the sole reason to buy the stock, it was nonetheless a potential game-changing growth catalyst, albeit a long-shot one. Last week, when discussing Meta Platforms, I talked about the aforementioned TikTok ban catalyst, and what it really means for shares. ![]()
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