Facebook Earnings

Today will be announced the Earnings Release of Facebook.
Analysis & rating of BarChart: FB - Facebook Stock Analyst Ratings - Barchart.com

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Disaster earning and worse outlook? I will be down a lot once the market opens tomorrow in one of my biggest holdings depressed already since the start of the year. My believes in the stock market and obviously Facebook/Meta in particular are shaken.

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I feel your pain mate. I’m in the same boat on this one.

I’ll probably be adding at this point

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I am considering as well… Or rather invest the cash available on some other of the beated down stocks… for FB Meta I believe that there will be buyers of the dip, in that case we shall see(hopefully) the stock rising at least some during the next days/weeks. True is that the bad news for FB stock are sending shock waves to many other equities and therefore increasing the general damage to the current market environment :smiling_face_with_tear::smirk:

Never really invested in FB, so would be monitoring closely for opportunity to diversify my heavily concentrated UK portfolio

Sorry my opportunity is other folk’s pain…

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No worries, it’s more Zuckhead’s fault. UK has interesting stocks as well as some other countries like South American ones, China and some part of Europe in my opinion, I am geographically diversified however mostly concentrated in the US (50%) that is another reason why I am not sure to add up more to FB.

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For those of you who are FB bulls what is the investment case? Is it that heir platforms will keep growing? Or that that monetize them more? Or is it mostly the speculative Oculus/Metaverse part? Just not a company I know that well other than as a user (I dont like FB or Instagram but have to use them…) but at these valuations I am always keeping an eye open, just not sure how this would be a better bet than my other big tech like Microsoft or Amazon even at this depressed valuations.

I understand your point, I also have to use FB and WhatsApp and so probably a billion or two people more that don’t really like FB but they use it for one reason or another. I have Amazon and Google as well, bigger positions than FB sadly I sold MSFT too early in 2021, however the investment case for me for FB is:
-FB keeps expanding at about 30-40% a year, slowed down this quarter in which the revenue is up “only” 20%.
-They never stopped at just owning FB platform, they acquired Instagram, WhatsApp and that’s one way how they keep growing.
-They are working on the metaverse and even if someone says they are behind the competitors how would they know what cards FB is hiding from the competitors, I expect they have some concrete plans. They have a platform called Reel which should be the competitor of Tik Tok (the reason why their subscribers didn’t grow this quarter).
-FB has a very strong financial position and a wide moat due to being the biggest social media on earth reason why most of the advertisers wants to appear on FB, more advertising means more money and I don’t see how that should slow down the growth.
-Personal opinions, many apps and online platforms they give you an option to register or log in, however I noticed that the log in tab gives option to choose Google account or Facebook they don’t ask for Tik Tok snap chat or even MSFT account, should mean that FB is getting everywhere one way or another.
-The P/E is only 20 while MSFT is 35 or more I didn’t check the latest, besides FB growing at 30% a year is ahead 10 points to their P/E ratio it should be rather undervalued. And this at a price of 320, imagine after the dip will be a steal.

Obviously these are some data I retrieved and some others are my personal insight, as I said earlier I need to convince myself in the first place for all of these because I am afraid I may rush to sell I believe I better don’t even open my account tonight to check. :sweat_smile:

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Did you add? Are you holding? I am seriously not willing to wait a year or two to recover my loss of now 30%, I would rather move the money into another equity that has better prospect and less risk… we may end up same as Alibaba at a 50-60% down from their top here…

With P/E Ratio (TTM) of 15.99x for growth texh Stock FB at the current price is a steal in my opinion. I just checked it the S&P 500 P/E ratio is currently 25.78x. NASDAQ P/E ratio is 25.23X

Also they invested heavily in Metaverse. They might be the first runner in this area gaining the first advantage.

Based on 43 Wall Street analysts offering 12 month price targets for Meta Platforms in the last 3 months. The average price target is $328.88 with a high forecast of $425.00 and a low forecast of $225.00.

It might be good to start DCA, dripfeeding in this area ??

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All good with what you said indeed. Problem with these type of sensitive stocks is that once under the radar any little bad news will be an over reaction…

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Short term, play swings.

Long term around 15-17 PE it is a good bet.
Ideal entry price 209$.

If market corrects further it can pull it down further.

I am still not doing lump sums for long term play, only monthly dca/drips.

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I agree that numbers and fundamentals were good before and are great now, however I am trying to see the investment under the opportunity cost point of view, considering if the money is better left invested in FB waiting for FB to prove itself again or invest it somewhere else I have some names on the watchlist that I would be more than happy to start a position with, especially non US stocks… What would be the harm to switch to another stock? I may miss the profit when FB goes up again (if, when and how much), at the same time obviously I don’t know if what I am buying is going up (if, when and how much). It would be an apple with apple exchange, not gonna buy something overvalued. I think I am done with my daily confusion tasks, have a great day everybody :grin: