Meta Platforms Inc. Among Least Risky Internet Stocks Amid Market Turbulence
In a recent publication, we highlighted a list curated by analysts identifying the 10 least risky internet stocks for potential investment opportunities. As a part of this exploration, we are delving deeper into where Meta Platforms, Inc. (NASDAQ:META) stands in comparison to its peers on this list.
Whenever the market faces downturns, investors are quick to recall the infamous dot-com bubble, a pivotal moment in economic history that left a lasting impression on market psychology. Currently, with a recession looming and various sectors experiencing significant corrections, many stocks have entered bear market territory, including those in the internet sector.
Analysts at Evercore have assessed that most internet stocks maintain limited exposure to tariff-related issues; however, they still suffer heavy losses each time the market reacts negatively to tariff developments. This consistent pattern indicates that these stocks now represent a favorable risk-to-reward ratio for savvy investors looking to navigate turbulent times.
In light of these evaluations, we decided to analyze each of these internet stocks in detail. Using the insights provided by Evercore analysts, we ranked the stocks according to their risk levels, with the least risky stock occupying the top position.
Is Meta Platforms, Inc. (META) the Least Risky Internet Stock to Invest In?
Adding to the recent developments, Meta recently announced the expansion of its artificial intelligence models. The company stated that it would utilize public content from users within the European Union to refine its AI capabilities. Users of WhatsApp, Facebook, and Instagram in the EU will receive notifications regarding this data collection.
Meta's transparency in its data collection practices is noteworthy, as the company declared, Were following the example set by others, including Google and OpenAI, both of which have already utilized data from European users for training their AI models. We are proud that our approach is more transparent than many of our industry counterparts.
With increasing regulations posing potential risks to tech companies, it is particularly interesting to observe Meta's proactive strategy in adhering to regulations from the start, rather than waiting for official enforcement actions from regulatory bodies.