lol !
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I really don’t like where this is heading, Mark knows the original business model is cooked and has put all of his eggs in one basket.
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It’s turning into a speculative stock, perhaps!
In what turned out to be a one day record Meta nee Facebook, lost $237bn. To put that into perspective that is the GDP of Portugal or
You could lay one dollar coins next to each out and you’d have enough to go round the world nearly 7 times!
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The market always overreacts to news in both the positive and negative directions, in my experience. This seems like an overreaction to me. I’m already holding my one FB share and holding it long term.
They have about 2B daily active users (ridiculous), according to this chart, so a
fall of 1m is about 0.05%. Not what I would say justifies 25% share price drop. Chart:
They have other platforms and we’re coming out of a lockdown phase where they had higher than average growth (see the chart) and probably the amount of time people are spending online for leisure is decreasing (my guess) so I’m not too concerned.
One of the most innovative tech companies at a PE ratio of 17, seems pretty good.
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I’m still new at all this, so would you say it’s a good time to buy meta?
Thanks.
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Welcome, I wouldn’t personally advise someone to buy or sell a stock, but I like to discuss my thoughts and people make their own conclusions.
What I ask myself is does this company look like it’s undervalued by the market, either relative to their growth potential, their current earnings or relative to similar companies in the market?
If someone were to offer you to buy the whole of Facebook (Meta), would you say it’s good or bad value?
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They don’t really innovate they tend to copy more than innovate. To quote Picasso (citation very much in question) “bad artists copy, great artists steal.”
A forwarding looking PE with revenue reduced by $10bn for apples privacy and $10bn invested into the meta verse pipe dream would look a lot less healthy.
The headlines that talk about MAU dropping are missing the point, ARPU is the metric that matter now and it appears to be dropping.
Buy $FB if you’re onboard with Zuckerbergs vision on the meta verse. If not you should be looking elsewhere.
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Ouch nearly 30% down, and I hear on the radio less and less are logging into fb?
Depends on yr goal.
I’m not going to invest long-term as I don’t think FB is just now set to be a long-term growth or value stock. If big tech ends up breaking up, parts of FB certainly could be growth.
Shorter term, I think FB is now undervalued relative to the market due to overreaction, but the whole market is overvalued and volatile too, so yer takes yer bets. Be okay with taking the loss if it comes.
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2 million $ is what they pay a decent engineer in the Bay Area. This is a ridiculous fine. 
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I don’t know if @Cyclopops brought Into Meta but there was a lot of other who did, maybe they were expecting a dead cat bounce - they didn’t get one.
2nd most popular stock on the platform last week.
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Meta/Facebook at a P/E of 17, is one the most obvious buys I’ve ever seen.
It’s a very similar situation to Microsoft in 2011 & Apple in 2016. Where the market only thinks 2/3 years ahead instead of in decades!
Take advantage when the market is being irrational!
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I think really this comes down to whether you have faith in them long term. PE is after all a backwards looking metric so for a social/growth company like FB which depends on having a captive audience to advertise to, a slowdown in user numbers and advertising revenue is a big warning sign. As is the war with Apple over advertising revenue because Apple controls the mobile platform.
Zuckerberg managed to stay relevant by buying user growth via trendy companies like whatsapp, instagram, and aping others like tiktok. The big bet on a meta verse which resembles aol world with better graphics does not inspire confidence for me and is frankly dystopian.
Unless someone new comes in and reinvigorates the company (as Nadella did for MS) or they buy competitors again I’d be worried about a long slow slide downhill from here.
Nobody wants to be on the same social platform as their parents.
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P/E is a backwards looking metric for sure, but 17 for a high quality business such a FB?
Growth for them doesn’t just mean rising user numbers. They already have 1/3 of the world’s population on either Facebook, Instagram or WhatsApp. This number was always going to slow down at some point.
The market is pricing Facebook as if it’s a stagnant business - the financials show otherwise.
From here, they will likely raise prices for advertisers to increase revenue & margins. The company is also spending $20B per year on R&D, of which you’d expect to generate revenues in the future. $10B of this is towards the metaverse & it’ll be the cherry on top, if they can dominate that space.
Highly profitable, high return on equity & very low leverage. Growing a good rate & great capital allocation. They’re one of the highest quality out there based on the fundamentals.
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The fundamentals look really impressive especially when you compare them to other big tech companies with decent moats. However I agree with @kenny and I don’t believe the $10bn (which is due to increase past $20bn by 2024) will generate enough revenue to justify its expense.
Mark has stifled completion by buying and copying for years (he arguably stole the Facebook idea to start with) Portal is a fantastic device but the uptake on shows that people don’t want him in their homes.
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The best thing FB could of done was not rebrand the name but to move MZ into retirement and either find a charismatic leader or just a bland team no-one ever really recognises.
Mark is now such a negative connection it is holding it back from being even more successful, sounds silly when you consider how big it is. 
That said I wouldn’t bet against them as they simply have so much money and can just buy an up and coming idea/company and take yet another leap forward.
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Meta are potential looking to fight a break up with the forced sale / float of Instagram and/or WhatsApp. They simply wouldn’t be able to acquire to kill of completion any more. Their biggest external threats are Apple and TikTok.
Tim Cook and Mark Z are not friends and with the rumoured Apple VR head set coming out they’re about to do battle again. Apple have a history of amazing hardware while Facebook don’t. TikTok are taking all the younger and valuable Facebook customers attention, they’ve tried to copy with Instagram Reels but this isn’t very good.
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I‘ve been really surprised by portal. Tbh I originally dismissed it. Then I did some Videocalls with someone who has a portal. The difference between talking to them on their phones and portal was the difference between night and day. The automatic tracking is cream on the cake. They‘ve obviously done some superb optimisation with the hardware and the software. 
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