2 bagger! Does it Meta?
Recently last month, my investment in $Meta Platforms, Inc.(META)$ almost reached the famous 2 bagger. (100% increase).
Of course this is a worthwhile celebration. However do not that this is NOT a recommendation to buy META, but more of a reflection exercise on what any investor can consider if this happens in their life.
The case to SELL
One of the initial strategies that I came across while learning how to invest is to sell and take profit once you hit a 2 bagger. In fact, sell 50% of what you have, take back your initial investment, and hold the rest till eternity.
This seems like a good proposition until you realise that it's foolish as:
1. On selling, somehow psychologically the price will go up and you will beat yourself up for not holding or buying more.
2. Or on selling, the price will go down and you will beat yourself up for not selling all initially.
Another case to sell is the school of thought to take profit whenever you think you can or when you have hit your target profit goal.
Aside, the risk was that META's GPM and operating margin was declining, on top of 17 insider selling risk.
Looking at my historical notes, my last estimate of META's fair value was at 214 in 2022. Surely taking profit now would seem sound wouldn't it? [Glance]
The case to HOLD
Technically, META looks like it is on a bull run. After a year of suffering, Mark has somehow found his Mojo back and steered META down the postive path of AI hype.
Aside, analysts are targeting a $360 average price target, with most of them asking for a buy.
On the fundamental side, META is improving its business dynamics and gotten rid of a lot of excess fat. GF values it at $396 using its in house valuation methods.
So how?
I did my readings, dived into the technicals and fundamentals and read up the stories and decided to HOLD. While the share did drop a little, it bounced up nicely and now I am over a 2 bagger.
Of course, will I hold it forever? Unlikely.
How much do I value it now? Around 350~360.
Utimately, the important point here is to impress upon the need to do your own due diligence and be convicted in your own research. Know your whys and the how will work itself out.
I've hit more than 500 days in Tiger!
Like and share if you think I have added value to your life. Aside, attached below is joke about why it's important to study. [Grin]
@TigerStars @MillionaireTiger @CaptainTiger
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The $298 earnings gap is close to getting filled. Worse case the overall market takes a major hit, and META goes to $285-$290 in my opinion.
ignorant sell off..but hey//it will bounce soon to $350++++....and on to $400-450++ by 1-24...stayyyy long FB!
I will buy more at price pass $315…better buy a going up stock than lower price stock that will continue to go down
2.21B outstanding and a lousy 6M share volume allowed to do this much damage to the value
Meta is a stock i just cannot make money off from trading , Beit options or physical , my jinx company
I sold very low last year making some profit and rebought at 123 and not selling.
The big market dip is coming in next 45 days - Meta could dip to 275 PPS.
Keep going Meta please~!!
Adding shares of META and ALB today
will earn 30 billion even after spending 10-20 billion on the metaverse...this stock has far more mileage on it ...about 3 weeks ago posted that nividia was worth about 400-500 million more than meta..hopefully some took action on nividia
Gonna dip under $300 next week. This market has ZERO run in it and it’s gone back to the days of up $1 down $3.
Stock is constantly up and down crazy don’t understand why the big guys are playing around buy low sell high and they can do it before opening and after closing take from the small guys fill there pockets as usual
The trade desk is sinking on ad business, nvidia is tumbling again as is supermicro and microsoft and broadcom and texas instruments.
Did not break $300 today. Is that a positive ?
The board of Meta should not allow the CEO to pull a stunt like a fight. Meta pays millions in security to keep him safe.
tech companies like AAPL are designing their own chips now and Arm may become increasingly irrelevant.
This stock should be 100,000,000 per share. Do the math.
Great ariticle, would you like to share it?