If you’ve been in the market at all the last week, you know that FB didn’t have their best earnings. It is currently trading at Pre-pandemic levels and has been searching for a bottom over the last few trading sessions.
Facebook has 2.89 billion users worldwide. Instagram has over a billion users worldwide. The global population is 7.75 billion. At 3.89 billion accounts, somewhere in the ballpark of half of the entire human population uses a meta application.
Knowing that, I can understand being skeptical of Meta being able to capture more ad revenue from it’s users. But if you think facebook is going bankrupt, or even that it won’t grow at all, when it’s already consumed close to half the earth in it’s social media cesspool, you are literally retarded. Several continents would have to be destroyed to seriously harm Meta’s userbase.
Oculus was the top downloaded app in the US on Christmas day. META owns 5 of the top 10 downloaded apps that day in the US and 4 on the global list.
$50 billion in cash after their $19 billion buyback
It has a P/E of 16, a 4:1 asset/liability ratio, 65% YoY increase in cash flow, and currently trades at 15x FCF. $AAPL, $MSFT, $AMZN, $GOOG, and $TSLA have a P/E of 25-188 (lol), higher debt ratios, lower margins (FB gross margin is 80%), and trade at 27-272x FCF (guess who’s at 272)
Weekly (and daily) RSI are the most oversold they’ve been since the post-IPO dump, and the weekly is curling to put in a bottom
It bounced off the May 2018 and Feb 2020 high today, delicious
Facebook is a leader in social media that isn’t going anywhere anytime soon. It may take a a while for FB to bottom out, but the likelihood that this correction was an overreaction is high enough for me to look at FB as a buy.
I’m looking to enter $200 leaps and sell CCs off a green day.
I’m super bullish on FB, and I think this past quarter ER was a publicity stunt TBH.
Right before earnings, the Senate Judiciary committee approved to reopen the antitrust suit against a few of the big tech companies.
On the FB earnings call, they mentioned TikTok over 30 times on the call and how it is growing much faster. They put a ton of emphasis on this and it leads me to think that they are trying to let it be known that they are not a monopoly.
We broke a few major support lines, and with general market risk off, I see decend probabilities that this could fall to 195$ next week or so.
I’m expecting 175 and 150 levels to be revisited on a negative catalyst (Ukraine, aggressive interest rate increase or major upswing in inflation #'s) with a close below 150 with an accellerated drop to previous lows/support
My play is to get 1 and 2 years out LEAPS at each of these levels with a major trading plan review on a close under 150$
I’ve also seen a lot of “land” transactions on Metaverse worlds, which I can only assume it will bring speculators (ie users) to metaverse and once this will egnerate enough buzz around it, it will gather critical mass of users to push FB up to close that gap (which is my TP)