Mark Zuckerberg's Meta Is Under Fire, but It's Also Undervalued

Newly-rebranded Meta Platforms still faces major controversy, but it's also the most attractive social-media play in our coverage  

Dave Sekera, CFA 12 November, 2021 | 2:17PM
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Mark Zuckerberg unveils the Meta rebrandMentioned: Meta Platforms Inc (FB)Snap Inc (SNAP)Pinterest Inc (PINS)Amazon.com Inc (AMZN)Walmart Inc (WMT)Alphabet Inc (GOOGL)Target Corp (TGT)

There's no shortage of news around Facebook (FB) for investors to consider these days, including that it has changed its name to Meta Platforms and will start trading under the ticker MVRS on Dec. 1.

While Facebook may have changed its name, the controversies that have dogged the company continue. It is facing regulatory scrutiny, antitrust lawsuits, and criticism about Facebook's use as a platform to spread false information about the U.S. presidential election and COVID-19. Shareholders are also pushing back through stepped-up proxy votes against company management.

But based on Morningstar's bottom-up analysis, the stock is trading at a 16% discount to our fair value estimate, and we continue to think that it's the most attractive social-media stock under our coverage.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Meta Platforms Inc Class A338.03 USD0.00Rating

About Author

Dave Sekera, CFA  Dave Sekera, CFA, is chief U.S. market strategist for Morningstar.