Meta Inventory: Apple wants to disrupt Mark Zuckerberg’s metaverse (NASDAQ:META)

Meta Platforms, Inc. (NASDAQ: GOAL) Investors who added exposure at their November capitulation lows have continued to outperform the S&P 500 (SPX) (SPY). Consequently, despite the pent-up pessimism about CEO Mark Zuckerberg’s metaverse ambitions, META has nearly recouped 50% of our november article. In connection with the 6% rally in the SPX, investors must be wondering what gave the bulls the ammunition to stage such a remarkable rally.

It’s pretty straightforward. Valuations and price action. Investors became so bearish in November that they sent META’s EBITDA NTM multiple to 5x, well below the zone of two standard deviations below its 10-year average. What does that mean? It implies that META valuation has been stretched too low, setting up a high-potential mean reversion…