4 Reasons Meta’s 400% Rally Isn’t Over

The narrative on Main Street has shifted in Meta’s favor – and paints a bullish picture from here... [Derby City Daily logo]( [Derby City Daily logo]( March 26, 2024 [4 Reasons Meta’s 400% Rally Isn’t Over]( By Andy Swan Meta Platforms (META) is riding one heck of a tech resurgence wave. Shares of the social media empire are up more than 400% from 2022 lows – and +40% in 2024 alone. We haven’t always been quite as enamored with META as Wall Street. As recently as [November]( LikeFolio data simply wasn't supporting the hype. (Though we did deliver a 114% profit opportunity [to our MegaTrends subscribers]( But data trumps all here at LikeFolio. And with the narrative on Main Street finally shifting in Meta's favor, we’re changing our tune. This latest LikeFolio data corroborates Meta's gains and even paints a bullish story from here... RECOMMENDED LINK [A.I. Expert Warns Investors: “Make or break moment for 2024 election year”]( But NOT for the reasons you think. This has nothing to do with a third party candidate... Or a potential government shutdown. But it does involve the federal government. (And most shockingly, it involves A.I.) It’s why A.I. expert Luke Lango is holding an urgent A.I. briefing on Wednesday, March 27th, at 8 pm ET. [Click here now to see how to secure your spot because...]( You could have a chance to see 6,000% profit potential. Reason No. 1: TikTok’s Loss Is Meta’s Gain Mention buzz is accelerating 13% on a year-over-year basis, largely driven by consumer adoption of Reels, Meta's answer to TikTok. Earlier this month, the U.S. House of Representatives passed legislation that could lead to TikTok being sold or banned, addressing national security concerns over data privacy. However, a sale wouldn't completely solve data security issues, and the proposal faces significant challenges, including ownership and antitrust concerns. TikTok might have lost that battle, but data suggests META is already winning the war for consumer eyeballs, regardless of TikTok's availability in the U.S. Reels mentions are up by triple digits (+118%) year over year, besting TikTok growth and continuing to chip away at market share: If there's anything Meta is good at, it's copying app designs and pushing it through to the billions of users already on one of its social platforms. Meta claimed 3.07 billion monthly active users last quarter alone. Reason No. 2: Ad Spend Recovery Underway The battle for eyeballs is really a proxy for advertising spend. Last quarter, much of this spend came from overseas, with China-based advertisers like Temu and Shein accounting for 10% of sales as they try to break into the U.S. market. META will benefit as the [ad market at large]( recovers. No. 3: Quest VR Finally Gets Its Moment Aside from advertising, META may prove the near-term winner when it comes to [artificial intelligence (AI)]( headsets. Though [Apple's (AAPL) Vision Pro]( was impressive, the world wasn't quite ready for it... yet. You can see on the chart above: Apple’s Vision Pro drop actually served as a [catalyst]( for META's Quest VR headset, which has wider immediate use cases/applications right now. Quest VR mentions are now up 48% year over year after two years of decline. Revenue for Meta's Reality Labs division, which encompasses its VR devices, exceeded $1 billion last quarter, despite the virtual reality unit incurring losses of $4.65 billion. We expect continued improvement on this front. RECOMMENDED LINK [Crypto Millionaire Names His Five Favorite Altcoins]( Crypto pioneer Charlie Shrem has an uncanny knack for spotting the biggest winners, like on Steem, Cindicator, and as much as the 200,000% he made on Bitcoin. Now, he says, there are five coins you must take a look at right away. [Click here to see the details]( No. 4: Reined in Expenses Lastly, it looks like META has expenses under control. The company laid off 22% of its workforce in 2023 and decreased its expenses by 8% in the fourth quarter. These moves, coupled with stronger ad spend, more than doubled its operating margin. Bottom line: META is finally proving competent at battling competition from giants like TikTok and even AAPL. If the company can continue to make improvements on the AI front and rake in ad dollars, it likely still has gas in the tank. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio Master Trading in Just 15 Minutes with Masters in Trading Live It takes less than 15 minutes to become a better trader with a brand-new FREE video series from trading expert Jonathan Rose. Masters in Trading Live airs at 11:00 a.m. ET every day the markets are open. 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