3 Reasons I'm Avoiding Meta Platforms Stock For Now
It's been a rough 2022 for the overall stock market, to say the least. All major indexes and many blue chip stocks saw their stock prices plummet this year, but few companies have been hit as hard as Facebook parent Meta Platforms (NASDAQ: META). As of Nov. 28, Meta was down more than 67% year to date, and there's little reason to believe that things won't get worse before they get noticeably better.
Here are three reasons why I wouldn't touch Meta's stock with a 10-foot pole right now.
Meta's main source of revenue is selling ads, and until the second quarter of 2022, the company had never experienced a decline in revenue since it went public in May 2012. Unfortunately, Meta followed up its Q2 loss with a disappointing Q3, when its revenue fell 4% year over year to just $27.71 billion. Maybe more concerning, though, is that its operating income dropped by around 46%, from $10.42 billion in Q3 2021 to $5.66 billion in Q3 of this year.
Source Fool.com
