Meta Platforms Has Substantial Upward Potential, Subject to Outcome of Twitter’s Lawsuit

Meta Platforms (META) seems to have created some sort of perfect storm amid rising fears that very few tech stocks, beyond Microsoft (MSFT) and Apple Inc. (AAPL) are able to show prolonged sustainability amid rising interest rates. Meta became a new kid on the block, adding to the names market can count on seriously.

As of July 7 afternoon, META shares, at P/E of around 35.5X, are trading lower by 0.42% at $290.90 after yesterday’s jump by almost 5% from its low of $284 to its daily high of $298.

New Meta’s branch called “Meta Threads” messaging app pulled at least 30 million signups in its first 24 hours, and may be closer to 50 million, according to a credible report.

As Bank of America analysts pointed out on July 5, the integration with Instagram could significantly boost the platform's initial growth (as it has already been proven), but the move could also be controversial due to the expected increase in regulatory scrutiny and Potentially resistant big platforms have a head start in terms of data and market dominance. It was also unfortunate for Zuckerberg’s new darling, that Twitter (TWTR) issued legal threats against Meta, accusing it of misappropriating trade secrets and intellectual property, claiming that Meta gave ex-Twitter employees access to confidential information used in Meta's development, and ceased access to development of Meta’s competitive product. Twitter boss Elon Musk weighed in on the matter, saying that “…competition is acceptable, but cheating is not”.

The bottomlime is that potentially Meta Platforms can easily add 20-30% to its current Market Cap till yearend, but its future prospects will be contingent on an outcome of the Twitter’s lawsuit.