I’m sorry but what you’re saying is like me saying that when I cross the street theres a risk of me tripping then hitting my head on a kerb and dying. Look at the business as it is and ask what would happen if Meta just vanished. Everybody knows Meta is cheap but I find it hard to justify this price when you have a company like Coca-Cola at over 20x P/E when it isn’t even growing.
Am I reading this correctly: You are suggesting you are still buying a stock you don’t believe in so that you can convince yourself that you didn’t lose much money?
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Define cheap. It has a healthy P/E but that is a retrospective indicator. Prior to COVID it was worth a maximum of $200, take 20% off that for what they’re spending on Zuckaverse and you’re at $160. That doesn’t account for the looming recession & Apple.
Looking forwards their main source of revenue is coming under fire from the privacy push from Apple and advertising spending reducing due to the recession.
I have no idea about Coca-Cola, I do know they’re in a completely different business so comparing Meta to them isn’t particularly instructive.
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Worth noting Google are pushing a similar change with Android, though not for at least 2 years and not quite as limiting as Apples implementation - Business Insider
But nonetheless it may limit Meta’s ability to target ads more specifically to individuals, the more specific the personal parameters/values you can offer for an advertiser to target, the higher value it attracts.
Stuff to consider when looking into Meta at least.
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I didn’t loose any money. Even made enough to cover fees. Don’t see why that’s an issue.
Bar Google, Bing has a near monopoly on search
Latest corporate wide memo from the COO.
Acknowledges leaner times are coming, but there are still plenty of opportunities. Sadly still throwing money at some VR metaverse bullshit that no one wants.
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Reading this I’m glad I bailed out when I did with no loss.
I can see a single digit P/E ratio soon.
I think this will be a problem across the entire market leading into late 2022. Personally I see this as an opportunity to save cash and hold off DCA’ing for the short term until earnings are compressed and P/E’s are re-evaluated. Great news for me as a young new investor who’s slowly making more money from work as I develop professionally 
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I think Meta will work around the restrictions from Apple and Google. I also believe their revenue per user will continue to increase.
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Thats insane. Whats your reasoning behind single digit P/E?
Trailing P/E is ~12 with a headwind coming from EU and difficulty monetising reels etc… in the middle of a bear market anything is possible.
Sounds like more of a reason to buy than sell to me
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P/E isn’t a helpful indicator of companies having a volatile history/future predicted.
Meta face significant headwinds and you’re not investing in them for a dividend income, they don’t pay one. When the recession hits one of the first casualties is advertising or 96% of Meta’s revenues.
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My thesis is that the P/E will readjust itself and appear higher once META’s earnings are compressed. There is more downside potential but I do believe that for the most part, META has already had most of its drop. I’ve been buying since $220 and below and I’m currently sitting on a $185 average.
Once the P/E ‘normalises’ you need to see a route to substantial growth, without it this stock could easily languish.
They can’t buy anyone
TikTok is eating their lunch
Facebook as peaked
Anyone who think they can make meaningful money out of WhatsApp is deluded
Metaverse, even if it works, will cost them so much money it’ll take a decade to recoup.
On the other hand -
Instagram is still a beast
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I’m not sure what other advertising and social media company is better than META (TWTR SNAP PINS etc). The only other company I like in the advertising space is GOOGL.
I think META will continue to grow on a per user revenue basis. META will likely not grow as it has historically done, and for a long time. I’m not expecting anything amazing from this stock for at least another 3 years, but I still think at this price I can get a good return. I really wish they’d let us use Whatsapp as a payment service, I feel like that would be very beneficial for users and for the company.
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They all face their own headwinds and I’ve not really looking into the ones listed so don’t feel like I can offer an educated opinion.
Portal has shown that despite the quality of a product people are unwilling to deepen their relationship with Meta.
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Bracing for $150. Holding off averaging in.
Happy I held off. Still waiting
Happy I sold 