$QQQ technology sector holds the keyTechnology sector can push the market up.
All depends on the earnings announcements next week:
Amazon
Apple
Meta
Google
Keep an eye on QQQ.
Meta
Meta Platforms | Fundamental Analysis 🚀Meta Platforms, the social media giant formerly known as Facebook, became a trillion-dollar company in June 2021. Three months later, its market value peaked at $1.08 trillion.
But Meta is currently worth only $370 billion. It has lost two-thirds of its value as a slowdown in its advertising business, continued losses in its virtual reality business and rising interest rates have scared away even the company's most ardent fans.
These unfavorable factors aren't going away anytime soon, but Meta stock also looks historically cheap at 17 times earnings estimates. Can this company regain its former appeal and join the 12-Zero club by the end of this decade?
In the first nine months of 2022, Meta earned nearly 98% of its revenue from advertising. It advertises in its "family of apps," which includes Facebook, Messenger, Instagram, and WhatsApp.
That family of apps served 3.71 billion monthly active users in the third quarter of 2022, up 4 percent from a year ago. However, Meta's ad business growth did slow in 2022.
This slowdown was caused by three main factors. First, Apple's iOS update disrupted Meta's ability to create targeted ads using third-party data, ByteDance's TikTok pulled users and advertisers away from Facebook and Instagram, and businesses began buying fewer ads as macroeconomic factors reduced their spending.
To counter Apple, Meta is refining its algorithms to collect more first-party data to target ads. It is also actively expanding Instagram Reels to challenge TikTok but admits that short videos are much harder to monetize than traditional ads. Both strategies will require Meta to increase spending as revenue growth has slowed.
In the meantime, Meta continues to invest billions of dollars in Reality Labs, a division that develops virtual reality headsets and software. In the first nine months of 2022, that division's revenue rose less than 3 percent year over year to $1.4 billion, but its operating loss rose from $6.9 billion to $9.4 billion. This pressure, along with a slowdown in the higher-margin advertising business, has caused Meta's operating margin to drop from 40% in 2021 to 27% in the first nine months of 2022.
Analysts are overwhelmingly negative about Meta's near-term prospects. In 2022, they expect revenues to fall 1% to $116.3 billion, operating margins to fall 26%, and net income to fall 37% to $24.7 billion.
However, this outlook could improve over the next few years as near-term adversity wears off. Meta's ad revenue could stabilize and grow again as the company collects more first-party data and monetizes more Reels. The broader advertising market may warm when inflation is contained and the Fed stops raising rates. An outright ban on TikTok in the U.S., which has been proposed by lawmakers, would lead to more Instagram revenue.
Meta's investment in Reality Labs could also finally bear fruit when the company releases cheaper, lighter, and more powerful Quest VR headsets. Widespread distribution of these devices could attract more users to Horizon Worlds, Meta's metaverse, which, after its initial launch in December 2021, never really got off the ground
But if Reality Labs continues to burn through billions of dollars without showing any sign of progress, Meta could either spin it off or shut it down. Either decision would likely be approved by Meta's investors, as it would instantly improve the company's operating margins and free up more cash to expand its core advertising business.
Finally, Meta had $41.8 billion in cash, cash equivalents, and marketable securities at the end of the last quarter. This huge reserve gives it plenty of room for new investments and acquisitions -- assuming antitrust regulators approve these deals.
Right now, analysts expect Meta's revenues to grow 5% in 2023 and increase 12% to $136.3 billion in 2024. The company's net income is expected to fall 11% in 2023 as it increases its expenses but grows 20% to $26.2 billion in 2024. These long-term estimates, which we should take with a grain of salt, suggest that Meta will eventually be able to overcome its near-term challenges.
If Meta's business stabilizes in 2024 and it continues to grow revenue and earnings per share (EPS) at a modest compound annual growth rate (CAGR) of 10% over the next six years, it could have revenue of $240 billion in 2030 with earnings per share around $16.
If the company continues to trade at 17 times earnings and three times sales, its stock could reach $270 a share with a market value of $720 billion. However, a slightly higher valuation could easily cross the trillion-dollar mark. Simply put, if Meta survives the near-term downturn and starts growing steadily again, it could join the trillion-dollar club again by 2030.
ADANIENT - A typical bubble burst Chart says it all. 231 rs could be the final stop, with multiple levels on the way. Not directly ofcourse but it's the start today. Look for very quick short bounces in purple box region especially.
Typical Charts of other bubble bursts from the past which could tell the story of ADANIENT ahead. Blueline in the charts below represent where we could be right now on the charts below
1. NaturalGas -
2. Meta -
3. Netflix -
NASDAQ 100 Index approaching 200 day moving averageTesla, Meta, Google and Disney all higher last 5 days
MARKET TALK
Big tech up sharply during the last 5 days, are investors discounting the “pending” recession and betting on the strength of the US consumer to support big tech earnings throughout 2023?
Tesla: up +9.43% last 5 days; earnings beats the street reported record revenue for Q4 2022
Meta: up +5.75% last 5 days; earnings due out on February 2nd; estimate to earn $1.5 per share against previous actual earnings of $1.64 per share (EPS)
Google: up +7.02% last 5 days; are the recent headcount and cost reductions good for shareholders?
Walt Disney : up + 6.10 % last 5 days; reports earnings on 8th of February; estimate to earn $0.8012 cents per share against the $0.3 cents per share earned during previous earnings period
TECHNICAL COMMENTARY
NASDAQ 100 Index (US 100 CFD)
Faceing hard resistance at its 200 day moving average….can the prevailing short term uptrend remain intact?
Multi week higher tops and higher bottoms on price indicate a prevailing short term uptrend (5-13 days), the index faces strong resistance around the 200 day moving average spotted near to the $11,950 (round number) while downside very short term (1-5 days) support seen at $11,740 and $11,550; provided price can hold above these supports or manage to break above its 200 day moving average (see chart) the prospects favor a continuation of the prevailing uptrend for short term (14-25 days) upside potential targets towards the $12,420s.
Not investment advice. Past performance is not indicative of future results.
$CEEK call wasn't expected THIS FASTLiterally posted yesterday but couldn't do it here, documented though
$CEEK is a liked project but have been out of it, except trailer position
Did move decently from bottom & seems 2b setting up but not ready yet, soon
When this pumps it's multi x's
Potential 10xer
#metaverse #nft #p2e #crypto #CEEk #CeekVR
TODAY!!!!!!!!!!!!!
I said SETTING UP! NOT THIS FAST! 🤣
#CEEK $CEEK
Volume coming in
RSI is nice, overbought but if we're in BULL it's okay
This could be position to build on pullbacks
#p2e #metaverse #p2e #crypto #ceekvr
Good Old Days for META?after deep dive of meta stock, $145 or $155 will be smart money first target for start retracement.
i think $137 act as good level for reaching $183. in other hand, $122~$120 zone and $110 maybe have some good long positions.
for long confirmation we need more clues.
META The worst is history! 6 straight green weeks.Our update on The Meta Platforms (META) on the 1W time-frame.
What stands out is that the stock has completed six (6) straight weekly candles, for the first time since March 2017! This is one of the strongest bullish sequences in its history and while at it, it has established 2 weeks above the 1D MA100 (green trend-line) for the first time since its September 2021 All Time High!
The short-term target is the 1W MA50 (blue trend-line), which is within the technical target of the Inverse Head and Shoulders (IH&S) that we can argue formed the October 2022 market bottom. With the RSI hitting the top of a Higher Highs trend-line that started on March 28 2022, it is possible to see a minor pull-back now to test the 1D MA50 (red trend-line) as a Support, but that will be the best long-term buy opportunity before we hit the 1W MA50.
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NFLXNow is the point (post-ER) I'd look to enter puts on NFLX .. Falling wedge still in tact on larger scale .. 1D / 1W / 1M timeframes show.
Names such as NFLX , META .. already sold off and likely have bottomed.
🟢 $BTC NEW TA : Another Bullish Move ?As you have seen in the previous analysis, exactly according to our analysis , the price had an attractive growth and was able to reach the $19,000 target , now I expect that after a slight price correction, we will see the price growth again And this time this growth is to fill the old FVG, its target is $20,000 to $20,300!
Last Analysis :
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👤 Arman Shaban : @ArmanShabanTrading
📅 01.13.2022
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Chances of facebook stock (Meta )Meta has two possibilities in which we must make an alert .
if it can break the strong resistance it made and drawn in chart it will move toward its target easily toward 137 ( that is more percentage).
the other oppurtunity it couldnt break the resistance . in that way it would move toward the support below at 88 dollar per stock , and we think by that way it would be a very great oppurtinity for long term investment.
if our idea is good for you please promote us . <3
Why PE Ratio is the Misunderstood MetricA high P/E does not tell you that stock is overvalued and a lower P/E does not mean that stock is undervalued.
P/E is simply just another metric and what it reflect is "Investor's perception about Company's Future Earnings"
Its shows "How Much investors are willing to pay for every $1 of Earnings"
In September 2021, Meta Platforms' stock reached a high of $385 with a PE ratio of 28. However, by March 2022, the stock had dropped almost 50% from its peak, with a PE ratio of 14. As a value investor, investing solely based on PE ratio, one may have believed that Meta Platforms was undervalued at a PE of 14, as it was historically trading at a PE of 28. However, even with the discounted price, the investment would have resulted in a loss of 40-50%.
FB / Meta targets224 is .618 from 2018 low. I didn't use march 2020 low because more fibs are lining up on using 2018. Optimistic targets for exits also identified in case of melt-up scenario some analysts are predicting.
$META bullish engulfing on the daily. $META bullish engulfing on the daily.
My next Price target is the $135 PL
NASDAQ:META
$META is looking for the Bullish engulfing on the daily. $META is looking for the Bullish engulfing on the daily.
When it breaks out of the ascending triangle on the session hour, it goes to $135.
META Closed 2 straight green months, the first time since 2021!Meta Platforms (META) is on a strong January monthly candle (chart on the right) having closed in December two straight green months for the first time since August 2021, which was its All Time High. This alone is a huge bullish development, which along with the 1M RSI being on an Inverse Head and Shoulders pattern (IH&S), it can start staging its long-term bullish reversal.
On the more medium-term 1D time-frame (chart on the left), Meta also made a significant bullish development, as yesterday it clearly broke (but failed to close) above the 1D MA100 (green trend-line), for the first time in one whole year (since December 30 2021). Having turned the 1D MA50 (blue trend-line) into a Support this last month (since December 12), if it manages to close a daily candle above the 1D MA100, the stock's next aim would be the 1D MA200 (orange trend-line).
The 1W RSI also had a major bullish break-out as it broken above a Resistance Zone holding since August 15, that previously had rejected the price a total of three times (Triple Top). In our view we can claim that Meta has a sustainable bullish reversal only if it breaks above the 1D MA200.
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META Potential for Bullish Rise | 10th January 2023Looking at the H4 chart, my overall bias for META is bullish due to the current price being above the Ichimoku cloud, indicating a bullish market. I'm looking for a pullback buy entry at 124.03, where the 38.2% Fibonacci line is. Stop loss will be at 112.47, where the recent low is. Take profit will be at 137.66, where the 50% Fibonacci line is.
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Meta ShortNASDAQ:META
Rejecting candle, Gap below, Weak on green days, Meta is on the way to close the gap.
TP - Gap close if reject or cpi will change the results may close trade before.
META is setting up for a breakout.What we are looking at here is META on the Daily TF.
I want to draw your attention to the downward sloping line (yellow), where price action has been attacking since the beginning of April.
The yellow line was acting as resistance until the 5th hit of that line, when a break out occurred (purple box).
Now that we have seen a breakout above that resistance line, the chart is indicating that the price action wants to go a bit higher.
Once the price gets to around the $140 level it will hit the resistance line (green), where we can expect the price to stall out and eventually retrace back down to the blue support line (as it is an up-sloping trend line).
If it breaks through the blue support, it will head back down to the down sloping (yellow) trend line which will now act as major support.
The first hit of the blue line could possibly be a great place to start going long on META, knowing that if it does pierce the blue line, the yellow line will provide some additional support for a major move to the upside.
At the end of the chart you will notice the red arrows, which indicate how price action is expected to go.
META will continue to be monitored for price action and this post will be updated as things change.
In the comments, let me know what you think will happen.
Cheers.
$META Trade Idea - Currently Green on the 4h, D, W and M NASDAQ:META is green on the 4h, D, W and M
Calls over $128.52
Target $130, $135
Puts under $124.54
Target $122.30, 120.40
$META reversal and break out of Descending Triangle on 5m$META reversal and break out of Descending Triangle on 5m with time frame continuity on all time frames
Looking for a gap fill up to the $126.94 PL, then $127.45.
$META Bear flag on 5 min$META Bear flag on 5 min, with TF continuity on the daily, 4h 1h
Price targets: $124.16, $123.67, $122.60
META - Entry. Profit Target, Stop LossThoughts on where I think META could go in the near future. Long Swing Trade on 3 Hour chart SST Strategy based, follow me for more insights and ideas on Stocks !! "Simply Successful Traders"
