With poor earnings report in the first quarter of 2022 and downbeat forecast for the second quarter, rising competition from TikTok - can we expect even further fall for Meta Platforms?
Fundamental indicators:
Revenue and Profits - consistently strong growth up until now but 2022 may be the first year when the rate slows down which is putting investors off at the moment
Profit margin - impressive 31% last year but will be reducing with growing CAPEX for Metaverse
P/E - already reasonable ration at 16x
Liabilities - no problems with debt
Technically:
Following IPO back in 2012 Meta has enjoyed explosive growth cycle which has culminated in September 2021
All of this movement can be marked as an initial 5 wave impulse and now we are observing the development of the global second wave which is normally very deep and rapid
The structure of the second wave is very likely to be an ABC zigzag where waves A and B have already completed
Waves 1 to 3 of C have already formed and fourth is taking shape as a Running Flat
The fact that this correction is tilted in the direction of trend, i.e. Running, the fifth wave can be quite aggressive and reach circa $96 which represents 0.786 Fibonacci retracement of the global wave 1, or possibly even deeper
What do you think about Meta Platforms and its future? Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.
Is it possible that it never recovers? what do you think about the long term perspective?
vitalalyt
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@rozatet, haha, quite possible but I think although the company has suffered a lot of reputational damage and not as impressive financially, it is investing into the future and hence may rise again, it might take some time though to see the returns