Better Buy: Meta Platforms vs. Nvidia
Meta Platforms (NASDAQ: FB) and Nvidia (NASDAQ: NVDA) both seemed like unstoppable growth stocks in 2021. After the initial COVID lockdowns, a surge in advertising growth drove Meta's stock to an all-time high of $382.18 last September. Nvidia stock peaked around the same time, reaching $333.76 in November 2021 as the chipmaker dazzled investors with robust sales of gaming and data center GPUs.
February brought that growth to a grinding halt for both companies, badly burning investors who had chased earlier rallies. After mixed fourth-quarter earnings and weak guidance in the year ahead due to its shifting business model, Meta stock now sits near $200. Nvidia stock has similarly stumbled, dipping to the mid $240s amid concerns about decelerating growth, peaking gross margins, and the ongoing chip shortage. Nvidia's plan to buy Arm Holdings and become a chip design powerhouse failed, disappointing investors.
Should investors take the contrarian view and jump on opportunities to buy either tech stock at a steep discount? Let's take a fresh look at both companies to decide.
Source Fool.com
