2 Beaten-Down Stocks With Massive Upside Potential

Over the past decade, (NASDAQ: TSLA) and Meta Platforms (NASDAQ: META) have delivered market-beating returns. But some may argue that there is little upside left for either stock. Tesla and Meta have underperformed broader equities this year, and as they invest heavily in artificial intelligence (AI), we may see their margins compressing, leading to even worse stock market performances, or so the argument goes. However, despite this potential problem, there are good reasons to think Tesla and Meta Platforms have significant long-term upside. Read on to find out more.

Image source: The Motley Fool.

Tesla is a somewhat risky stock. The company's core electric vehicle (EV) business is facing more competition in the U.S., with Rivian recently launching an alternative to its best-selling Model Y. China-based automakers are also making significant strides abroad. Meanwhile, Tesla is trading at 178.6x forward earnings. The stock could contract over the next few years if it fails to make progress where it matters most. And the market is no longer primarily focused on Tesla's EV segment. Instead, investors and analysts are paying close attention to the company's robotaxi service that could transform its business.

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Source Fool.com