Meta stock

The communication services stocks have been the hardest-hit this year. Do bargains lurk in the tattered sector?

Twitter is a wild card, after Elon Musk bought the company, giving shareholders a 26% gain for this year. Many parts of the Disney empire are mutually reinforcing, in my view, and that’s a big reason I like the stock. A weak point is the debt level, 1.99 times stockholders’ equity. But there are other choices in the sector I like more. We’ll see what the new “chief Twit” does. A strong point is the dividend yield, 6.8%. Musk has had big successes with Tesla and SpaceX. It sells for 110 times recent earnings–far too high a multiple for my taste. These developments have excited investors, who have pushed T-Mobile shares up 32% this year in a down market. After this downturn, the stock sells for 19 times recent earnings. It has close to $42 billion in cash or marketable securities. Meta Platforms ($266 billion), formerly Facebook, depends on ad revenue, which is falling lately.