After its post-earnings surge last month, Meta Platforms (NASDAQ:META) stock has held steady, but it’s clear that enthusiasm is waning.

A big reason for this has to do with how well shares in the Facebook and Instagram parent have performed in recent months.

Since the start of 2023, META is up by more than 89%. This performance has outpaced that of other FAANG stocks, all of which are up by double-digits year-to-date.

Yet with this big run-up, plenty of commentators are getting worried that the stock has moved up too far, too fast. Many of them are laying out the bear case for shares, arguing that the next sign of trouble will cause a big reversal.

My view? I think this is an overreaction. The stock may not only hold on to recent gains, but add to them as well.

META Stock and Rising Concerns

As hinted at above, Meta Platforms reported strong results for the preceding quarter. While revenue grew by just 3% year-over-year, Meta’s top-line number ($28.65 billion) came in nearly $1 billion ahead of sell-side forecasts. Earnings also beat analyst consensus, coming in at $2.20 per share, versus forecasts averaging $1.95 per share.

Despite weakness in the digital ad market, as well as the overall tech sector slowdown, Meta exceeded expectations because of the cost-cutting efforts led by CEO Mark Zuckerberg.

Following META’s big drop in price last year, Zuckerberg pivoted away from his metaverse-focused strategy.

In its place, Zuckerberg implemented a new game plan for Meta, one that better balanced the need to maximize profitability in the near-term, while pursuing growth opportunities for the long-term.

Even as this well-received earnings report provided yet another boost for META stock in late April, sending it back near $250 per share, it could be the last boost for a while.

Now trading for around 20.6 times forward earnings, the aforementioned worried commentators believe META is becoming overvalued, and is ripe for a correction, as uncertainties still surround the company and the overall tech sector.

The Silver Lining

Growing cautiousness for META stock may not bode well for shares in the near-term, but there’s a silver lining in the long-term. Further weakness may work to your advantage if you’ve been waiting to lock down a position.

If you didn’t buy Meta Platforms late last year, or even earlier this year, before the overall “story” changed with the company, you may be kicking yourself.

However, there’s no need to. After all, hindsight is 20/20. Better yet, if META keeps pulling back, you may have the opportunity to scoop up a position before the stock potentially experiences another hot run.

With the impact of the company’s cost-cutting efforts now more anticipated by analysts, it may be harder for Meta to beat expectations again in the coming quarter, assuming current economic conditions stay as-is.

Over a longer time frame, though, the social media conglomerate could resume crushing it.

First, if there is a rebound in earnings, as macro headwinds fade. Then, if there is a continued rise in earnings, thanks to three factors. One of which may be one-known. Another has fallen on the back burner. The third one may be something the market isn’t fully aware of.

Bottom Line

Meta’s high-profile growth catalyst is its Reels short-form video feature, now deployed on its most popular social media platforms.

Although monetization remains a work in progress, Zuckerberg has stated that Reelz will soon have a positive impact on profitability.

Meta hasn’t fully abandoned its metaverse plans. This, too, could prove to be a growth driver down the road. The relatively “under the radar” growth catalyst is the company’s artificial intelligence efforts.

It’s no secret that Meta is looking to stay ahead of rivals in this fast-growing area of tech. However, what may not be as well-known is that the company has largely built-out its AI infrastructure, and may be poised to more immediately capitalize on this trend.

With so much suggesting a continued recovery, go against the grain with META stock.

META stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.