1 Reason to Buy Meta Stock Now and Hold for the Long Term
Meta Platforms (NASDAQ: META), the owner of Facebook, Instagram, and WhatsApp, makes nearly all of its money from ads. As of Oct. 22, the stock is down about 10% from its September high of $779.82. This is despite a strong third-quarter earnings report, with revenue growing 26% year over year.
One reason I see the dip as a buying opportunity is that Meta is building new revenue streams that could make it an even stronger business over time. Meta’s non-ad revenue from its apps grew 59% to $1.1 billion. Management said this growth came mainly from WhatsApp paid messaging — businesses paying to message their customers on the app — and subscriptions.
Another non-advertising revenue stream is Meta One, a subscription service that unlocks extra features across the company’s apps, which has passed 15 million subscriptions and trials. That’s less than 2% of Meta’s total revenue today, but it’s growing more than twice as fast as the company overall.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.