Andrew Willis: While Mark Zuckerberg is beginning to scare some of his own employees as he worries about tougher economic times ahead, we might be less concerned about Meta than he seems to be. It makes sense for the Facebook parent to slash hiring targets in a tight labor market and make the most of the situation by motivating employees to work harder. But we think that the worst might already be over, as it seems the stock market has reacted to all the negativity and has priced it in.
Plus, we don't believe Meta's leadership team will lose sight of just how successful its advertising business has been and still can be going forward. Senior equity analyst Ali Mogharabi sees Meta's fair value estimate in deep value territory today with its wide moat of 3.6 billion users that continues to attract advertisers to a variety of platforms, not to mention an entire metaverse worth of advertising opportunities.
For Morningstar, I'm Andrew Willis.
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