It’s an understatement to say that Meta Platforms (NASDAQ:META) shares have made a comeback since last November. During this time frame, META stock has rallied from as low as $88.09 per share to around $290 per share today.

That represents around a 223.5% gain, or a more than three-fold jump, over a relatively short period. With this, it may seem like the prudent move would be to sell it if you own it, stay away if you’ve yet to enter a position in the Facebook and Instagram parent.

However, a closer look suggests that taking this very cautious approach is not necessarily the move you need to make.

If you currently hold META, there may be good reason to keep holding it. If you’ve been waiting to add this tech winner to your portfolio, today’s prices may still be an opportune entry point. Here’s why.

3 Reasons META Stock Has Made a Recovery

At first glance, you may assume Meta’s epic rebound is entirely because of the excitement surrounding recent advances in artificial intelligence. As you likely know, this has been a boon for major tech stocks, and this tech stock is no exception.

Not only that, there is more substance than hype behind “AI mania” surrounding META stock. As I argued back in May, Meta Platforms is utilizing AI to further strengthen its business.

However, AI is not the only reason sentiment for this stock has shifted from heavily bearish eight months ago to bullish today.

Two other factors have played a large role. In fact, you can say these factors have played an even larger role in META’s rebound. First, Meta’s decision to reduce operating costs and scale back its metaverse investments kicked off the stock’s big rebound in price.

Second, the company has figured out how to keep competition from platforms like TikTok at bay, with its Reels short-form video feature.

This feature is already helping the social media giant hold onto market share. In addition, this now-monetized feature is helping to re-accelerate revenue/earnings growth for its Facebook and Instagram platforms.

There’s Still Good Reason to Buy and Hold

Yes, with its more than three-fold move higher, META stock has gone from being undervalued compared to not just FAANG stocks, but stocks generally, to having a valuation (24.8 times forward earnings) more befitting of a mature big tech company.

As hinted above, going from undervalued to fairly priced may have those holding META tempted to cash out. Those who have yet to buy it may see it as a sign to continue sitting on the sidelines.

More value-conscious investors may decide it’s best to wait for another tech stock sell-off before starting to build a position.

You’re free to approach this stock in any way you want to. However, let me suggest that the better approach may not be so extreme. Because of the catalysts mentioned above, plus the in-progress rebound in the digital ad market, analyst forecasts call for big earnings growth.

They say that earnings could hit $17.09 per share between now and 2025.

Assuming META holds onto its current multiple, this level of earnings growth points to further big gains ahead for the stock. In hindsight, those who decide to sell/sit on the sidelines today could end up regretting their decision.

Bottom Line

While I believe there’s more upside ahead for Meta Platforms stock, it may be a bumpy road to higher prices from here. Although not for certain, another round of volatility could hit big tech stocks, META included.

Still, that doesn’t mean you need to wait for weakness to enter/add to a position. Remember, many factors, not just “AI mania,” have driven its rally.

A cooldown in this investing trend may not be as dramatic with META as it could be with other tech names.

With so much working in its favor, re-hitting $300 per share is well within reach for META stock. In the years ahead, not only re-hitting its all-time closing high ($382.18 per share), but climbing to even loftier price levels (north of $400 per share) is very possible as well.

META stock earns a B rating in Portfolio Grader.

On the date of publication, Louis Navellier had a long position in META. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.