Facebook (FB)
Facebook | Meta |Fundamental Analysis | MUST READ ! ! ! 🔔Social media titan Facebook, now Meta Platforms, has recently been in the midst of a whistleblower scandal. A former employee made allegations against the company. This drama is just the latest development for Meta, which has become a lightning rod for debate.
Investors may be seeking to figure out if the company's best days are over, particularly as Facebook's platform becomes less and less popular with younger users. Let's try to look away from the noise to see if Meta is a smart investment today.
The company is under pressure after Frances Haugen made allegations about the way the company does business. According to the whistleblower, the company's algorithms encourage the distribution of sensational, misleading, and controversial content that is useful for engagement but likely harmful to users.
Haugen also cited leaked research showing that Instagram, one of Meta's platforms, harms the mental health of young users. One study found that suicidal thoughts increased among teenage girls in the U.K. after using Instagram, and another study found that it contributes to eating disorders. These findings have prompted intense examination from politicians, who are asking for regulation of how Meta does business. Regulators have a lot of power and can do all sorts of things to the company, up to and including its complete collapse.
Meta is also a pioneer in the social media industry; its FB app is one of the oldest platforms in use today. Over time, Facebook's popularity among younger users has declined, ceding the lead to apps like Snap and TikTok. While Meta's Instagram platform is still popular, it's fair to question whether Meta is on the decline.
If we pay attention to the company's results, Meta proves that it is one of the most successful business models in the world. The company recently reported third-quarter 2021 results, its first full quarter after Apple implemented iOS privacy policies, making it harder for ad businesses like Meta to track its users.
The company continues to do well despite all the drama, political threats, and pressure from Apple. In the third quarter, the company increased the number of daily active users by 6% year over year to 1.9 billion, and the average revenue per user rose 27% to $10.00.
The increased number of users and higher revenue per user drove Meta's third-quarter revenue growth by 35% year-over-year to $29 billion. The company is also extremely profitable, converting nearly 33% of that, or $9.5 billion, into free cash flow. With $58 billion in assets on its balance sheet, Meta has a lot of cash on hand and has announced a massive $50 billion stock buyback program.
The company recently announced a rebranding to the name "Meta" to focus its energies on developing the Metaverse. This is a space where the physical and digital worlds can interact in the future.
The company is splitting into two main segments, one of which will be Facebook, Instagram, WhatsApp, and the rest of Meta's apps. The other is Reality Labs, dedicated to Metaverse, Oculus, and other virtual reality projects. Metaverse could one day become a whole new digital economy, and CEO Mark Zuckerberg talked about a digital world where non-gaming tokens, virtual goods, and advertising could be new possibilities.
Explaining the company's rebranding, Zuckerberg specified that it would take years to implement. Meta could spend at least $10 billion on its Metaverse business this year and is likely to spend tens of billions of dollars in the subsequent years.
The company's stock has fallen over the past five weeks amid the whistleblower story. Analysts estimate that Meta's earnings per share (EPS) could be $14 for all of 2021, which values the stock at a projected price to earnings (P/E) of 23.1.
It is a small premium compared to the P/E ratio for the S&P 500, which is 21.3. Nevertheless, Meta's predicted 2021 earnings are up 37% from last year; projected earnings per share of $14 are up 39% from 2020. One could argue that this growth rate should provide a premium over the broader market, making Meta stock engaging at these levels.
Patient investors can continue to benefit from the profitability of Meta's existing business, while Metaverse may one day take the company to new heights. Regulation remains a likely menace, but Meta's growth potential is hard to ignore.
FB / META making a come back?+ FB bounce back above 200MA (yellow line)
+MACD crossed up (although below zero line)
+ currently sitting at 20MA (red line)
+ hammer alike candle
immediate resistance at $340 (gap resistance)
Next R $350 ( 50&100MA)
SL if $320 violates.
_Please be informed that our analysis is based on historical DATA to predict/forecast upcoming movement, our bias may change due to market conditions. _
Disclaimer:
Please be informed that above analysis are solely for education purpose; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your remisier or dealer representative.
You are responsible for your own risk management Do Your Own Due Diligence
MANA ! Swing trade. Looking like it’s Flagging and Squeezing.
We might see the breakout SOON. We can see the MA moving along the way.
Since Fb is going to MetaVerse this one can Go a long way!
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This one Falls In our research on swing set ups with a good ratio of Risk and Reward.
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$FB - Full count from IPOHere is a count for FB starting at IPO. I've thrown in an andrews pitchfork to determine confluence as well as fib time analysis to see what shows up. Some interesting results for sure.
Basically im expecting FB to climb to 350ish by EoY for the B leg of w4. It should then spend the next few months heading down to 260 for its w4 target. This level shows a lot of confluence, with the pitchfork 1 Std deviation (which has acted as support in the past during 2018 and 2020 corrections) coinciding with the 38.2% fib for W4, as well as the 13 Fib time level all meeting up to support price....and from the looks of it, 200 weekly MA should be joining them for the support party.
I would want to play $300 puts at $350 and $300 calls at $265.
MANA ! Wealth Creation. Swing Trade Idea!Mana is looking like it’s getting Support on MAon smaller time frame.
Don’t miss out this bad boy!
Falls In our research on swing set ups with a good ratio of Risk and Reward.
As always we put quality over quantity, don’t forget to follow us for SWING trades research on risk and Reward Ratio.
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Swing trading is great because you can create a lot wealth in % by risking less $$. Compound Gains.
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How Will Meta Monetize The Metaverse?What do we know about the Metaverse?
The Metaverse is a concept (for now). A concept that has motivated Facebook to change its branding to Meta and begin developing the infrastructure of a meta-universe. The drastic pivot that Facebook is attempting to pull off, the Company hopes, will put it at the forefront of the internet’s “next frontier”, just as it was a decade and a half ago when Social Media platforms were maturing.
Facebook/Meta CEO Mark Zuckerberg has called the Metaverse an “embodied internet … where with just a pair of glasses, you will be able to step beyond the physical world… beyond the limits of distance and physics” and engage in rich people-centred experiences.
A simulation of the Metaverse that Zuckerberg demonstrated last week showcased the potential of the platform. In the demo, a group of avatars met in a virtual room, played a hand of poker before being dazzled by a room-sized 3D artwork sent and paid for by A friend of Zuckerberg exploring New York (in real life).
For all the altruistic CEO-speak regarding the Company’s mission to “Bring people together”, Facebook/ Meta will still have to monetize the Metaverse experience. Conquering the next frontier may have to coincide with a new method for generating revenue for the Company.
How will Meta monetize the Metaverse?
A legitimate question that exists is; how will Meta monetize the Metaverse? A model based on highly targeted advertising is what has worked for Facebook in the past. Facebook has reported US $54 billion in revenue so far in 2021, setting the Company on a path for another record year. In contrast, Facebook has booked a comparably paltry US $1.2 billion in revenue in the same time frame from its non-advertising revenue streams, such as the sale of Oculus headsets.
Zuckerberg has maintained that Facebook would always remain free to use. Fortunately, the Metaverse is not yet hamstrung to such a proclamation. Meta should be exposed to more revenue-generating opportunities including, subscription models, hardware sales, ticketing, skins, gaming and pay-to-play models, and SaaS. It might be fair to say there will be a universe of options for Meta to explore.
That’s not to say that Ads can’t be integrated with a metaverse, slotted tidily within the virtual landscape. Meta may even generate a more accurate understanding of their customer base through their metaverse experiences, boosting demand for its ads services as ads become hyper-targeted.
MANA! Swing set up MANA,
With fb news we might see this bad boy going up to 35$. Long term even higher.
This long term Investment. Don’t miss out.
Falls In our research on swing set ups with a good ratio of Risk and Reward.
As always we put quality over quantity, don’t forget to follow us for SWING trades research on risk and Reward Ratio.
Subscribe and don’t miss out next research.
Swing trading is great because you can create a lot wealth in % by risking less $$. Compound Gains.
Thank you for the Love, I really appreciate those likes, makes a difference.
Facebook will LeadFacebook should be strong in the coming weeks . expect these resistance lvls below to be taken out or reached.
R LVLS
330
337
355
367
Making moves into the Metaverse and publicly rebranding the name to focus on the METAVERSE is a big step for FB as it'll now be a whole different monster.