Meta Platforms: Good Risk/Reward IdeeaMeta Platforms - Short Term - We look to Buy at 328.00 (stop at 319.00)
Price action has posted a bullish Hammer and is positive for short-term sentiment. Bespoke support is located at 325.00. We look for gains to be extended today. Previous resistance located at 350.00. Risk/reward is ample to call a buy trade.
Our profit targets will be 352.00 and 360.00
Resistance: 350.00 / 380.00 / 400.00
Support: 325.00 / 310.00 / 300.00
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Metaplatforms
Swing trade on Meta PlatformsNASDAQ:FB has found support, initially at the horizontal level, then the 200EMA, and finally it's back above the 50EMA. This is a sign of a bullish security.
A swing trade can be taken here, targeting the recent high. A stop level set below the recent low that's below the 200EMA.
Meta Platforms | Fundamental AnalysisMeta Platforms, formerly known as Facebook, has been getting a lot of attention lately, primarily because of the reasons that led to the name change. The company has stressed that it will actively invest to become a leader in the metaverse. The move has divided investors into two camps.
On the one hand, the move to the metaverse expands the overall addressable market, which could provide revenue growth for more than a decade. On the other hand, some investors worry about the resources of time and capital that Meta Platforms can devote to a project with uncertain results. Nevertheless, the company's core business, social media, is experiencing steady user and revenue growth on a huge scale. Let's try to better understand Meta Platforms' business and determine if the stock is worth buying, selling, or holding in 2022.
As you know, Meta Platforms' business is fueled by its family of social media apps, including Facebook, Instagram, and WhatsApp. These three apps bring together 2.8 million daily active users. More than a quarter of the world's population logs into one of Meta's apps every day. That's impressive and quite appealing if you're a marketer.
Meta apps are free to connect and use; the company makes money by showing its users ads. Of course, marketers are willing to pay more if their ads can be delivered to more people. What makes Meta's user base even more attractive to advertisers is that people are willing to reveal information about themselves, such as age, marital status, favorite movie, etc. Marketers can use all this information to target ads more effectively.
Improving efficiency increases the return on investment that markets get from advertising spending. For example, if a person reports that their favorite movie is "The Avengers," that's probably the perfect candidate to send out an ad for "Eternals," which is coming out in theaters right now. And as long as marketers see a good return on their investment in advertising in the Meta family of apps, they'll keep spending money.
And indeed, they do. Almost all of Meta's revenue comes from advertising, and the company's annual revenue has grown 45.8 percent over the past decade. Meta's social media business is doing pretty well, although revenue growth has slowed for four years in a row. This may be one of the reasons that prompted the company to announce an aggressive investment in creating a metaverse.
To help quantify the investments Meta will make in creating a meta-universe, the company is creating a new Facebook Reality Labs (FRL) reporting segment. CFO Dave Wehner said this segment will impact the company's $10 billion in operating income in the fiscal year 2021 and even more in subsequent years. The costs will certainly be high, but the rewards may be worth it, as CEO Mark Zuckerberg aims to have 1 billion users in the metaverse in about a decade.
Meta Platforms has a great business, and with its investment in the meta-universe, there is the potential for revenue growth over the next decade. The company's stock is also not expensive. On the contrary, trading at a price to free cash flow ratio of 26.5, they are near the bottom of their range for the past five years. The same can be said for the price-to-earnings ratio, which is 23.5. Great prospects right now, huge potential over the long term, and an inexpensive price point that makes Meta Platforms stock a buy for 2022.
FB Meta Platforms: Upside PotentialHello friends, today you can review the technical analysis on a 1D linear scale chart for Meta Platforms, Inc. (FB).
1) The price is currently in a Double Bottom Pattern with the potential of coming to a breakout area.
2) If price breaks out of the Double Bottom Pattern, it would move back inside a Parallel Channel it has been respecting since February 2020. It fell out of the channel in early October 2021 and has tried to regain access back into the channel.
3) The Volume is consistent.
4) The RSI (relative strength index) has a resistance line which the RSI is coming close to.
5) If price reaches the Double Bottom Pattern target, it would be a 20% upside move.
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As the year is coming to an end and holidays are almost here. I want to wish my friends Happy Holidays and ready for an exciting 2022! What are your thoughts for the coming year?
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
Meta Platforms | Fundamental Analysis |Long Setup|MUST READ 🔔Meta Platforms stock has declined markedly over the past few months. After popping a 52-week high of $384.33 three months ago, shares of this technology company have fallen more than 19%.
Meta stock appears to be cooling off after a victorious 2020 and further strong gains this summer. The stock is also likely affected by increased media and government scrutiny of the company, as well as recent iOS changes that have negatively impacted Facebook's ad measurement and tracking.
But despite the bearish trend and some negative headlines about the business in the media, parent company Facebook's core business is doing well. Given that business is doing well and the stock is falling, is this a good buying opportunity for investors? Or should investors wait for further stock declines before considering buying Meta stock?
To understand how staggering Facebook's momentum is, let's look at some key metrics from the company's Q3 earnings report. Revenues were up 35% during the reporting period, mainly due to a 33% year-over-year increase in advertising revenue, and the total number of unique daily active users across all of the company's platforms rose 11% year-over-year to 2.81 billion. The number of unique monthly active users across all platforms rose 12% to 3.58 billion.
For the fourth quarter, Facebook is forecasting revenues between $31.5 billion and $34 billion, reflecting a significant seasonal increase over third-quarter revenues of $29 billion. The midpoint of this forecast range means a 17% year-over-year increase. However, Facebook's forecasts tend to be fairly conservative, so actual growth over the period is likely to be higher.
Investors should also keep in mind Facebook's impressive cash generation. The company's free cash flow for the nine months was $25.9 billion, up from $13.8 billion last year and $15.8 billion in the same period two years ago. Facebook's 12-month free cash flow was $35.8 billion.
This strong cash generation has resulted in a huge inventory of cash, cash equivalents, and marketable securities totaling more than $58 billion. This strong position combined with active cash generation has allowed Meta to actively repurchase stock. In the third quarter alone, the company repurchased $14.4 billion worth of its stock and announced a $50 billion increase in share repurchase authorization during its third-quarter results presentation.
With such strong fundamentals, it's hard to believe that the technology company's stock is trading at just 22 times earnings today. That's even more surprising when you admit that Meta's current consensus analyst forecast for its bottom line assumes earnings per share growth averaging 21 percent year-over-year over the next five years. Investors should not let Meta's recent stock decline and conservative valuation fool them. It is still a growth stock and should be valued as a growth stock.
While there is no way of knowing if this is the low point for the stock, investors who bought the stock today will likely have good results over the next few years. While there are certainly risks for Meta Platforms, including the changing digital advertising landscape, antitrust concerns, and competition from smaller social media companies such as Snap and Twitter, these risks seem to be largely embedded in Meta's conservative share price.
Facebook/Meta Platforms Analysis 15.11.2021Hello Traders,
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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.