Technology

Mad about Meta

Viv Govender from Rand Swiss Offshore said Meta offers good value at its current levels, and all that is needed to make it pop is for CEO Mark Zuckerberg to cut metaverse spending.

Meta’s share price dropped by 7% on Tuesday after a news report that the European Union privacy watchdog put restrictions on its advertising.

The Wall Street Journal reported that Meta would not be allowed to use its platforms’ terms of service to permit advertising based on what users tap and watch within their apps.

In future, the Facebook and Instagram owner will reportedly only be allowed to run advertising based on personal data with users’ consent.

Jefferies’ Brent Thill cast doubt on the ruling, saying it is unlikely to be implemented in its current form as it will hurt consumers and businesses.

Despite these challenges, Govender remains bullish about Meta because of its low price and price-to-earnings (P/E) ratio.

Govender first proposed Meta as a good investment when it was trading in the nineties, and the stock price has jumped to over $110 since then.

He still sees value in the stock at current levels, saying all it requires to pop is for CEO Mark Zuckerberg to become more rational about what to do.

“All that Zuckerberg needs to do is curb spending on the metaverse, and the stock can easily double in price,” he said. “There is still a lot of value in the company to help it to run from here.”

Govender is in good company. Over the two quarters, Meta was the most popular stock among super investors.

Many super investors pumped money into the stock over the last few months, including Viking Global Investors, Christopher Davis, and Robert Olstein.

Meta share price in 2022

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