Meta Platforms slips even as Bernstein names it the firm's top pick
Justin Sullivan

Meta Platforms (NASDAQ:META) fell more than 3% on Thursday even as investment firm Bernstein named the tech giant its top pick.
The firm said that for the third time in the company's history, it is at a crossroads and the bear case is getting louder, as some believe there is an "expiration date" for social media. However, the firm, which has an outperform rating and $195 price target on Meta Platforms (META), said at this level, a little bit of turnaround could go a long way to keeping bears quiet.
"At these pricing levels, we don't need to prove out the bull case for the stock to work," the analysts wrote. "Today, we just need the company to get back on track [and] provide evidence that global engagement is up across its family of apps; offer a disciplined expense guide; and show improvement in revenue trajectory."
The analysts conceded that the goals are "easier said than done" and the coming third-quarter results could be seen as a "make or break" quarter.
"We aren't apologists nor blinded optimists," they added, while noting that "there's evidence to support that all three legs to the bear case have been overdone and over-hyped."
On Wednesday, Loup Ventures analyst Gene Munster said Apple (AAPL) and Meta Platforms (META) are well positioned to become leaders when investors return to the tech sector.