SOCL - The Business Cycle And Its Potential Implications For Meta Platforms

• According to our interpretation of several economic indicators, we believe that we are still in the expansion phase of the business cycle, however we may be close to its peak.
• Both in the expansion phase and at the peak of the cycle, consumer spending is generally above average, which can be beneficial for the ads business.
• Declining consumer confidence, however, may signal that consumer spending on services and discretionary products may decline in the near term.
• As a result of reduced consumer spending, firms may be inclined to cut back on their aggregate advertisement costs. On the other hand, FB has cost efficient advertising offerings combined with superb targeting opportunities, meaning that FB may remain an ideal choice in times when budgets are limited.
• All in all, we believe that due to FB's attractive valuation, despite the temporary headwinds, the stock could be an attractive choice for growth investors with a long time horizon.

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