As you know, I am a long term investor. Thus, I usually buy stocks for the long term, and never short any equities due to shorting's unlimited risk. With a P/E ratio of 10, it would be reasonable to think that META is a good bargain considering its status as a social media giant. However:
1. META's Userbase is declining, something never seen before in the history of the company.
2. Competition like Google's Youtube and ByteDance's Tiktok is catching up and overtaking META
3. New Apple (AAPL) IOS changes, which made META's data collection process much harder, has and will adversely affect its ad revenue (which is 98+% of its total revenue)
---------- Specifically, the IOS change requires META to get the user's permission to collect data for Ads. Until now, data shows that only 33% of users allow META to collect their data for more personalized ads. I think you can see how this affects Ad revenue.
Thus, the "metaverse" is the only thing that may/may not save META from its inevitable doom. However, that means that:
1. The metaverse needs to develop in the years ahead, and not just stay at a gaming level
2. META must have enough cash to fund research into the metaverse
3. It must dominate the metaverse industry
Although I personally think that META is a lost cause, I choose not to label this as "#METAshort" because I think all investor have their own opinions. Here are some good points about META:
1. 10 P/E ratio (lower than S&P 500 average
2. META's adaptability
3. Technicals? (Not seen yet)
I choose to write this now because META's Q3 results are tomorrow and are key to how META's stock and the metaverse will develop in the future.
Anyway, thats all for my idea. Please leave a comment and boost this idea so it can go out to other investors! 😊
P.S. Someone give me coins :)
1. META's Userbase is declining, something never seen before in the history of the company.
2. Competition like Google's Youtube and ByteDance's Tiktok is catching up and overtaking META
3. New Apple (AAPL) IOS changes, which made META's data collection process much harder, has and will adversely affect its ad revenue (which is 98+% of its total revenue)
---------- Specifically, the IOS change requires META to get the user's permission to collect data for Ads. Until now, data shows that only 33% of users allow META to collect their data for more personalized ads. I think you can see how this affects Ad revenue.
Thus, the "metaverse" is the only thing that may/may not save META from its inevitable doom. However, that means that:
1. The metaverse needs to develop in the years ahead, and not just stay at a gaming level
2. META must have enough cash to fund research into the metaverse
3. It must dominate the metaverse industry
Although I personally think that META is a lost cause, I choose not to label this as "#METAshort" because I think all investor have their own opinions. Here are some good points about META:
1. 10 P/E ratio (lower than S&P 500 average
2. META's adaptability
3. Technicals? (Not seen yet)
I choose to write this now because META's Q3 results are tomorrow and are key to how META's stock and the metaverse will develop in the future.
Anyway, thats all for my idea. Please leave a comment and boost this idea so it can go out to other investors! 😊
P.S. Someone give me coins :)
Comment:
The script in the chart is an indicator that I have coded. Please contact me if you want the code for it! I will publish it for you!