๐ฅWhy should the META grow by 182%? PE, EPS, QT, crypto(?)
๐ฅHi friends! 434 days from ATH to 2015 year lows. Zuck lost almost $100 billion in 13 month!
Why do I think that META should grow by 182%? The answer will be in the end. Now we gonna talk about the main reasons why the 1 trillion company fall to 270 billion capitalization.
๐ฅFirst of all, if you want to undestand why META fall so deep, you should pay attention to the fundamental data.
๐ EARNINGS
3Q REV. 27.71B, EST. 27.41B, beats by only 1%
3Q EPS $1.64, EST. $1.89, lower by 15%
3Q FACEBOOK DAILY ACTIVE USERS 1.98B, EST. 1.86B
95% of profits Meta is advertising. According to the company's report, we can note that the smaller number of advertisements launched by users (sellers) indicates a decrease in demand among consumers. People pay attention to saving money rather than spending.
๐ฉ For example, investments in new housing decreased by 26%, which has not happened since the 2008 crisis. This indicates a world recession and the main reason why Meta fall.
Globally, we can see the recession not only on Meta but on FAAMG overall. There has only been one other day since 2012 (when Facebook/Meta IPO'ed) in which FAAMG stocks underperformed the S&P 500 by as wide of a margin.
๐ PRICE TO EARNINGS (PE) and EARNINGS PER SHARE (EPS)
The price-to-earnings ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).
Simply put, in how many years will the company pay off if 1 share brings a certain amount of profit. For example, if 1 share of Meta costs $100 and earnings per share (EPS) is $10, then your share will pay off in 10 years = $100 (Price)/10/share (EPS).
Only now after the 75% dump, the PE of Meta return to a favorable value for buying (9-10) for the long term.
As you can see the PE was 20-30 at the last year and few years before. So you need to wait for 20-30 years for your investments to return!
โ It's just a drop that normalizes the company's numbers and forces the stock to move from weak hands to more patient ones.
๐ THE FED HIKING RATE
Quantitative tightening (QT) refers to monetary policies that contract, or reduce, the Federal Reserve System (Fed) balance sheet. FED will finish the hiking rate by the Q1 2023 ass experts said.
The high rates are made in order to reduce inflation and so it is. Inflation in the US does continue to fall. But such high-tech companies as Meta are starting to suffer because of the reduced demand among the people.
โ Therefore, we can see at least a local reversal in stocks in the next 2-3 months.
๐WHY DO I THINK THAT THE META SHOULD GROW BY 150-200% IN THE NEXT FEW YEARS?
The answer is the crypto BULLRUN and mass crypto adoption. The Meta (FB+Inst) is the largest social networks. Zuck is continuing to develop metaverse project (avatars, NFTs etc.) and as we all know there are no metaverse without crypto.
Meta price can blow up, when BTC starts it's bullrun as it was with another companies related to the crypto back in 2020: Coinbase (COIN), Marathon (MARA), crypto miners (Riot, Hut8 etc.).
๐ TECHNICAL ANALYSIS
The closest support areas:
๐ฅ $90-100 - value area, even number
๐ฅ $72-85 - value area
โ The closest target and resistance is $162-186 value area.
๐ฉ The growing volume shows us that the main reason for fall was the the panic selling and MASSIVE liquidations of the overleveraged traders. This is why the price can make a local PUMP(pullback) soon.
In any case, it's good for the big players, who got the huge amount of liquidity to buy Meta.
โ Traders, what do you think on META? Is it possible for Meta to return to 1 trillion capitalization? Write in the comments!
๐ปFriends, press the "boost"๐ button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
Why do I think that META should grow by 182%? The answer will be in the end. Now we gonna talk about the main reasons why the 1 trillion company fall to 270 billion capitalization.
๐ฅFirst of all, if you want to undestand why META fall so deep, you should pay attention to the fundamental data.
๐ EARNINGS
3Q REV. 27.71B, EST. 27.41B, beats by only 1%
3Q EPS $1.64, EST. $1.89, lower by 15%
3Q FACEBOOK DAILY ACTIVE USERS 1.98B, EST. 1.86B
95% of profits Meta is advertising. According to the company's report, we can note that the smaller number of advertisements launched by users (sellers) indicates a decrease in demand among consumers. People pay attention to saving money rather than spending.
๐ฉ For example, investments in new housing decreased by 26%, which has not happened since the 2008 crisis. This indicates a world recession and the main reason why Meta fall.
Globally, we can see the recession not only on Meta but on FAAMG overall. There has only been one other day since 2012 (when Facebook/Meta IPO'ed) in which FAAMG stocks underperformed the S&P 500 by as wide of a margin.
๐ PRICE TO EARNINGS (PE) and EARNINGS PER SHARE (EPS)
The price-to-earnings ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).
Simply put, in how many years will the company pay off if 1 share brings a certain amount of profit. For example, if 1 share of Meta costs $100 and earnings per share (EPS) is $10, then your share will pay off in 10 years = $100 (Price)/10/share (EPS).
Only now after the 75% dump, the PE of Meta return to a favorable value for buying (9-10) for the long term.
As you can see the PE was 20-30 at the last year and few years before. So you need to wait for 20-30 years for your investments to return!
โ It's just a drop that normalizes the company's numbers and forces the stock to move from weak hands to more patient ones.
๐ THE FED HIKING RATE
Quantitative tightening (QT) refers to monetary policies that contract, or reduce, the Federal Reserve System (Fed) balance sheet. FED will finish the hiking rate by the Q1 2023 ass experts said.
The high rates are made in order to reduce inflation and so it is. Inflation in the US does continue to fall. But such high-tech companies as Meta are starting to suffer because of the reduced demand among the people.
โ Therefore, we can see at least a local reversal in stocks in the next 2-3 months.
๐WHY DO I THINK THAT THE META SHOULD GROW BY 150-200% IN THE NEXT FEW YEARS?
The answer is the crypto BULLRUN and mass crypto adoption. The Meta (FB+Inst) is the largest social networks. Zuck is continuing to develop metaverse project (avatars, NFTs etc.) and as we all know there are no metaverse without crypto.
Meta price can blow up, when BTC starts it's bullrun as it was with another companies related to the crypto back in 2020: Coinbase (COIN), Marathon (MARA), crypto miners (Riot, Hut8 etc.).
๐ TECHNICAL ANALYSIS
The closest support areas:
๐ฅ $90-100 - value area, even number
๐ฅ $72-85 - value area
โ The closest target and resistance is $162-186 value area.
๐ฉ The growing volume shows us that the main reason for fall was the the panic selling and MASSIVE liquidations of the overleveraged traders. This is why the price can make a local PUMP(pullback) soon.
In any case, it's good for the big players, who got the huge amount of liquidity to buy Meta.
โ Traders, what do you think on META? Is it possible for Meta to return to 1 trillion capitalization? Write in the comments!
๐ปFriends, press the "boost"๐ button, write comments and share with your friends - it will be the best THANK YOU.
P.S. Personally, I open an entry if the price shows it according to my strategy.
Always do your analysis before making a trade.
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