2022/03/03 (013) Technical Analysis

It`s still time for the Meta Platform share – former facebook…
Meta Platforms recently lost 230 billion in market capitalization in one day
– almost as much as Germans Volkswagen & Siemens are worth together!

Tech stocks are suddenly no longer the darlings of the stock market. In the first few weeks of the year there was a veritable sell-off. There are a number of reasons – and offers opportunities. Netflix, Paypal & Meta, these brands were the stars of the stock market. Companies have repeatedly topped their own price and earnings forecasts in recent years. While other industries struggled with losses in the corona pandemic, many tech giants seemed to emerge from the crisis as winners. However, that ended at the beginning of the year. The former sure-fire successes have fallen deeply, with some shares falling by more than 20 percent. Looking at Netflix, Paypal and or Meta I can only write: “These were three absolute investor favorites in the recent past who really had to suffer a massacre at the start of this year 2022!”The Meta share has now arrived at an attractive level and is valued at a P/E of 22 from just 14. Many risks are likely to have already been priced in. In terms of charts, there are already signs of a bottoming out around the $200 mark. That`s one to stay long in our trading capability…

Things have been going downhill for the social media giant Meta Platforms lately
The sale could be stopped in the past few days. Thus, the chances are good that a bottoming will take place just above the important $200 level. There has also been positive news recently from an operational point of view. According to recent studies, user activity on social networks increased significantly during the course of the Ukraine war. In view of the tense geopolitical situation, this should not be a temporary phenomenon. Many people in the crisis regions – such as Ukraine – are now likely to communicate more via social networks. This plays Meta into the hands of the world’s largest social media provider and should have a positive effect on user growth.Analysts remain mostly bullish

The positive development in user activity over the past few days should not have gone unnoticed by analysts, most of whom currently recommend buying the share. A total of 45 Wall Street experts recommend buying Meta, 15 are neutral, and only three recommend investors sell it. The average target price is $330.09, almost 60 percent above the current price level.

However, Morgan Stanley yesterday lowered its price target on Meta from $360 to $325 (overweight rating remains). The analysts justified the lower target price by saying that the integration and monetization of the new service Reels could take even longer.

Competitor under pressure

The news comes at just the right time that Reels competitor service TikTok has now been targeted by US regulators. Specifically, the authorities want to investigate the negative effects of TikTok on children’s mental health. “As children and adolescents already struggle with anxiety, social pressures and depression, we cannot allow social media to further impact their physical health and mental well-being,” said Maura Healey, Massachusetts Attorney General.According to the Reuters news agency,
the social media giant Meta wants to list
the Indians start-up Meesho on stock exchange

Meta co-owns Meesho alongside Softbank. The company is active in the field of e-commerce and sells household goods, cosmetic products and clothing accessories, among other things.

Meesho is said to be considering an IPO in both India and the US. This is planned for early 2023. At the last capital raise in September, Meesho was valued at $4.9 billion. Meesho raised $570 million.

With Meesho, users can resell goods previously purchased on the marketplace via Meta’s subsidiaries Facebook, WhatsApp and Instagram with the intention of making a profit. In September, Meesho had almost 17.8 million monthly active users.

With Meesho, Meta has established a foothold in the Indian e-commerce market. By listing Meesho as an independent company on the stock exchange, it avoids possible regulatory pressure from the Indian authorities in the future and can still continue to participate in the Indian market through the remaining shares and existing cooperations. Meta can use the income generated in this way for new investments.

Basic informations about the share

With Meesho, Meta has established a foothold in the Indian e-commerce market. By listing Meesho as an independent company on the stock exchange, it avoids possible regulatory pressure from the Indian authorities in the future and can still continue to participate in the Indian market through the remaining shares and existing cooperations. Meta can use the income generated in this way for new investments.

I am perhaps one of the few young elders (born in 1978) who don’t use the company’s product line at all. Let alone I hold long-term positions in the company, such as a few CFDs in Apple stock.
But at some point you have to be greedy when others are fearful, as Warren Buffett would say. Where I was in Apple at 120$ last time – and or at 90$ back than. Like currently still at 150$.

And while Facebook doesn’t look like a Buffett stock at first glance, the company’s valuation is extremely compelling as of this writing. However, I classify Mark Zuckerberg’s vision and prospects as speculative – in contrast to Apple. Let alone Microsoft. But I’m not invested in Microsoft because I’ve invested in Apple before.JP Morgan recently released a report calling the Metaverse a $1 trillion annual opportunity. In the report, titled “Opportunities in the Metaverse,” the analyst states that the Metaverse “is likely to infiltrate every industry in some way for years to come.” If that prediction proves to be even halfway right, Zuckerberg’s $10 billion bet could turn out to be smart. What I still perceive as too speculative – and that´s why I’m not personally invested in his stock…