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What should you do with Meta’s shares after a nearly 500% rise in two years?

Harry October 30, 2024

Meta’s shares are up nearly 500% in the past two years, but one analyst still likes the name.

“Fears about the scale of (capital spending) intensity are overblown as we remain steadfast in our view that Meta can generate a reasonable (return on investment capital) with a modest increase in core spending while also investing in the next big thing,” Bernstein’s Mark Shmulik said in a note to clients. he said:

He also noted a more “balanced” risk-reward setup in the near term, given “nearly 24 months of impressive upward estimate revisions and a healthy rerating.”