To The Moon

$Meta Platforms (META)$ The market's expectations are higher this year for a couple of reasons Election year E-commerce platforms compete for big clients AI Plus boosts advertising efficiency So after a weaker than expected Q1 earnings report, it still recovered all lost ground and made new highs within a quarter until the recent Magnificent 7 collective pullback. While META has been very volatile on earnings day for the past few quarters and has been one of the better trading opportunities, with $Pinterest, Inc.(PINS)$ earnings coming out today, I intend to sell all of my META positions ahead of earnings. The election factor won't really help META too much, instead exposing it to additional risk due to popular candidate Trump's distaste for it; The heavy investment in e-commerce platforms cannot be sustained for too long, and cross-border e-commerce advertising may be subject to regulatory and geopolitical influences to some extent, which may affect expectations; The overall downturn in the consumer sector will leave the advertising industry with "no rice to cook". The capex from AI may not stop, but it may not be able to deliver, which may affect margins in the next 1-2 years. So I would think that META, while it may still perform strongly in Q2, may blow a bit of a gasket on top of its guidance, or at least focus the market's panic a bit. So if performance is stable after earnings, you can buy back in, but if expectations are down and guidance is poor, you may want to avoid it in the short term. Even though META has the lowest relative PE of the Mag7. But low for a reason.