To The Moon

$Meta Platforms, Inc.(META)$ share price hits the bottom today at 142.00, a drop of 60% since its high of 361.03, a year ago.

Meta plunged 13.5 % last week, its sharpest weekly loss since January, when it dropped 21.15%, closing at 146.29.  Today it sets a new record low at 142.00, another 2.72% drop from yesterday.    

Is Meta a Buy now or a Falling Knife? 

Meta is facing strong headwinds currently.  Apple's privacy change makes it harder to effectively target online ads and this has cut into ad pricing, jeopardising Meta 's position in digital advertising.  According to Meta, this change in Apple's privacy setting has caused Meta a 10 billion dollars shortfall in revenue. 

The other headwind that Meta is facing is competition from TikTok which has impeded user growth.  Meta is using Reels short form videos to counteract the competition.  

Meta Q2 2022 earnings fell 32% compared to previous year to 2.46 a share.  Revenue dipped 1% to 28.8 billion dollars, its first year over year decline in revenue in its history. 

Meta is also spending Billions in Metaverse which is a long way to bearing fruition.  Currently Meta's main source of revenue is from advertising which forms 97% of its revenue. 

However on the plus side, Meta has 3.6 billion users in a month.  Daily active Facebook users rose to 1.968 billion in Q2 from 1.96 billion in Q1.  According to CEO, Zuckerberg, ad revenue from Reels had reached a 1 billion dollars annual run rate.  He also said that Meta will increasingly show Facebook and Instagram users Reels from people that they don't follow.  Unsolicited content will roughly double from 15% to 30% through 2023.

Fundamentally, Meta is a strong company with no debt and a free cash flow of 35.77 billion dollars as at 30 June 2022.  It is profitable and has a strong balance sheet. 

I believe the growth story of $Meta Platforms, Inc.(META)$ isn't over yet.  If Meta can weather its current challenges and begin to capitalise on its Metaverse investments, it can turn the corner to become the winning stock once again. 

If the current price of 142.00 drops further to 130.00, $Meta Platforms, Inc.(META)$ is a Buy to me.  It takes courage and belief in the future of Metaverse now to invest in $Meta Platforms, Inc.(META)$ Howeve I believe that it is only a matter of time before Metaverse becomes a reality.  Investing is a marathon and not a sprint.   Patience and Fortitude will bear fruits in the future. 

@Daily_Discussion@MillionaireTiger@TigerStars@CaptainTiger