Buy The Meta Dip

Facebook (now officially known as Meta Platforms) came to market 10 years ago on the 18th of May, 2012 in what was then the largest IPO in history. The Menlo Park-based social media giant raised $16 billion at a $104 billion valuation. Something that was unheard of back in those days.

The company didn't exactly shoot the lights out, and the share price did not pop higher on day one. In fact, things went from bad to worse as they struggled to monetise their main platform. The share price flopped, sinking from $38 to $19 per share by October. It wasn't until August 2013 that the share price returned to its IPO level.

What happened from then onward was pure magic. The power of their ad-centric business model became apparent as more and more advertisers used the platform to reach their target audiences. Facebook's $1 billion purchase of Instagram was also a stroke of genius. That platform is worth well over $150 billion now.

Today, Meta owns four of the most downloaded apps of the decade. Even though its share price is 500% higher, its existence is being questioned and tested once again. I think the current weakness in the share price is an overreaction to a poor set of quarterly numbers, and Meta will bounce back soon.

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