Analysts questions why you would buy Meta Platforms (META) stock

) latest earnings release, analysts at Needham & Company questioned the reasons to buy the stock now, as its return on invested capitals decline.

Analysts stated: "Why buy META now, when management is saying that they are in a 2-3 investment cycle, and rev will come in 3-4 years." Furthermore, Needham, which has an Underperform rating on the stock, highlighted its concern that expenses and capital expenditure estimates are rising faster than consensus estimates during 2024.

Furthermore, the firm stated: "Recently, the US passed a law requiring ByteDance to divest TikTok within 1 year. We expect TikTok to sue to overturn this law, based on Free Speech. We do not think they will be successful, as the US will claim "national security". For META, we worry that rising geopolitical tensions between the US and China add risk to 20%-25% of 2023 ad revs that came from Chinese discounters like Temu, Shein, etc.

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