Company Of The Day: Meta Platforms


What?

Meta Platforms (NASDAQ:FB) has started testing subscriptions on its Instagram photo-sharing application. Under this model, fans can pay a monthly fee to access exclusive content from creators they follow.

Why?

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The move could help creators better monetize their content, while potentially driving a new revenue stream for Meta Platforms down the road, as it could eventually take a cut of subscription fees.

So What?

We estimate Meta Platforms Valuation to be around $409 per share which is about 29% ahead of the current market price. This represents a P/EBITDA multiple of 23x for the company based on our forecast for Meta Platforms EBITDA for the current fiscal year

See Our Complete Analysis For Meta Platforms

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 FB Return -6% -6% 175%
 S&P 500 Return -5% -5% 102%
 Trefis MS Portfolio Return -10% -10% 255%

[1] Month-to-date and year-to-date as of 1/20/2022
[2] Cumulative total returns since the end of 2016

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