Discover Surprising Value in Tech Giants: A 2024 Investment Opportunity

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By Ronald Tech

The Current Market Landscape

The recent market downturn in 2024 presents a unique opportunity for patient investors to acquire strong stocks at more favorable price points. With the Nasdaq slipping below its 21-day moving average and the S&P 500 approaching a similar trendline, the market correction offers a chance to delve into promising investment prospects.

The resurgence of those who chase returns in the midst of falling rates indicates a potential quick rebound from the recent market dip.

Fiserv, Inc.: A Stealthy Financial Services Powerhouse

Fiserv, Inc., a behind-the-scenes player in the financial services industry, operates as a crucial backend provider for a multitude of major financial institutions, banks, credit unions, fintech firms, and enterprises. Offering a wide range of services including account processing, digital banking solutions, payments, and more, Fiserv’s extensive reach positions it as a vital contributor to the financial technology landscape.

Steady expansion throughout the years culminated in a significant 2019 acquisition that propelled Fiserv’s revenue and earnings growth. Projections indicate an anticipated 8% revenue growth in FY23 and FY24, alongside a respective 15% and 14% increase in adjusted earnings. Moreover, Fiserv currently holds a Zacks Rank #2 (Buy) and garners favorable recommendations from brokerages, making it an appealing investment prospect.

Despite Fiserv’s soaring performance over the last two decades, the stock trades at a substantial discount to its 10-year highs and the Zacks tech sector, showcasing significant potential for value-conscious investors.

Meta Platforms, Inc.: Uncovering Hidden Value

Meta Platforms, Inc., the parent company of social media behemoths such as Facebook, Instagram, and WhatsApp, has witnessed a remarkable 170% surge in the last 12 months, outperforming the broader tech sector. Nevertheless, Meta’s current valuation presents an enticing value proposition, trading at a discount to the Zacks tech sector and its own historical metrics. As Meta approaches its 21-day moving average amidst neutral RSI levels, the stock offers an opportunistic entry point for astute investors.

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Projected to exhibit robust earnings growth in 2023 and beyond, Meta’s improving earnings outlook, coupled with its consistent outperformance in comparison to EPS estimates, underscores its attractive investment merits. Additionally, Meta’s current trading levels position it as an intriguing choice for investors seeking hidden value within the tech sector.

Meta Platforms, Inc.: A Dominant Force in Social Media

The Dominance of Meta Platforms, Inc. in the Social Media Space

Despite concerns about slowing ad spending and the growing saturation of Facebook, Instagram, and WhatsApp, Meta grew its daily active user (people) base by 7% last quarter to a mind-blowing 3.14 billion. Meanwhile, its monthly active users popped 7% to 3.96 billion.

The company’s various apps focused on different niches of social media and digital communication attract advertisers clamoring to reach the massive user base in a world where people are glued to their phones. All of this means that Mark Zuckerberg’s metaverse bet doesn’t have to pay off anytime soon—if ever. And Meta’s balance sheet remains robust. 

The Continuous Growth of User Base

Surmounting concerns, Meta Platforms, Inc. has expanded its daily and monthly active user base by 7%, reaching an unprecedented 3.14 billion and 3.96 billion, respectively. Despite the perceived saturation of its flagship platforms, Facebook, Instagram, and WhatsApp, the company’s diverse suite of social media applications continues to allure advertisers targeting a vast and captivated audience in today’s smartphone-dominated world.

The Metaverse Bet and Robust Balance Sheet

Amid Mark Zuckerberg’s ambitious metaverse venture, Meta Platforms, Inc. evinces little urgency for its success in the near future. The company’s financial footing remains resilient, signifying that near-term success of the metaverse initiative is not a critical concern.