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Diagnosing Stock Drops

Motley Fool Money

Meta, Meta's Down 60% Over the Past Year

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The stock could rise in the near term. But I don't think that meta is doing enough to move the middle needle in their digital advertising business. This is a large bet with an uncertain payoff over an uncertain time period. To look at this purely on a valuation basis may provide some shorter term traders with a gain because it is so oversold. Over the long term, I think that the capital allocation of this company is still heading to thwart any kinds of gains they could get from ad sales.

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