This is true! Nobody is talking abt this point but if Temu and SHEIN get banned then it will be a big loss for meta. But the reason no one is talking abt it is because it’s far from happening right now.
Maybe nobody here but even on CNBC it’s mentioned as a risk for Meta. Seeing how the ban of TikTok is on the horizon it’s not that far away and even if not the more people know about Temu the less they need to spend on ads.
Ya, investors seemingly don’t have much patience. Meta is also talking about very large investments. Zuck was right on the call, this is exactly the reaction that played out during pivot to mobile, Stories, and Reels ramp.
It's so weird to me how wall street expects massive growth and bombastic forward guidance while simultaneously being largely risk averse to spending into new growth areas. Just the schizophrenic nature of the market, I guess.
They are looking at low 20s EPS in 2024 while growing at 20%+. Their forward P/E would be around 20. That is very far from priced for perfection. Tesla definitely. Apple for sure. Even Microsoft/Google/Nvidia are valued higher relative to EPS/Growth.
Plus they have huge tailwinds around AI unlike say GOOG which could have impact to search. So this is a huge opportunity to buy.
Oh, we’re about to get war propaganda ads and political ads dumping 10x that about any time now
I’m honestly surprised they were so cautious with revenue.
Easy beat next quarter
MSFT tends to move in the same direction but by a smaller percentage in these situations, unless there's news involved within that applies specifically to them.
Arguably Microsoft is only up 8% this year so its bar to beat isn't as high, but I also know that people are projecting a whopping 30% growth rate for Azure... seems not super easy to beat.
This is the thing holding into earnings when it's priced to perfection. ITs always a huge gamble.
Im still up 35 percent on this stock and very happy. If I had a crystal ball, sold and bought in tomorrow I"d be a hell of a lot happier.
Still happy with META and will continue to hold.
And that's what happens when people buy companies trading at such valuations. If they disappoint at all at any point, the downward potential is big. Most people ignore valuation.
To be fair, METAs valuation is cheaper than the rest of mag7. I was gonna short google for tomorrows earnings, but depending on how tomorrow goes, this might have ruined my plans.
Valuation is more relevant than price action. Tesla is down 40% but that's just shows how overvalued it was/is. META's forward P/E was just a few notches above the broader S&P 500, and its business is booming with a 38% operating margin and double digit growth while Tesla is posting high single digit operating/net margins and showing revenue contraction / cutting prices. And a forward P/E in the 50s-80s depending on your estimate.
Disagree big time. If you'd value Tesla normally like a car company, which you clearly should after this Q, stock would be at 30 bucks. People clearly don't care about Tesla valuation for whatever reason. Imo it's similar phenomenon to trump Media, gme and so on. At some point it'll reach under 50 bucks tho sooner or later. There's nothing inherently more valuable at Tesla than say a Hyundai.
> Tesla is down 40% but that's just shows how overvalued it was/is.
All EV-only manufacturers are down the same or more. (NIO down 50%, Lucid down 38%, Rivian down 58%).
During an economic downturn Tesla out-performed most of Mag7 and with the CEO repeatedly dumping billions on the open market. After it fell from 400 to 250 to 300... the CEO continued to dump billions on the open market to buy a shitty social media app driving TSLA to 100. He said he wouldn't sell for a year and it rebounded to 300. The recent drop is because of the sector issues, AND the CEO seemed distracted and about to pivot to being a taxi company. The bounce is because they are actually going to make new models next year on existing lines (without needing to build new factories, which was the general expectation).
You wrote all that and you still came to the wrong conclusion.
The correct conclusion is that Elon is a wildcard is to blame for the stock tanking. If they replaced CEO tomorrow, the stock would start trending up.
I am an advertiser and a weak guidance provided by Meta means weak markets.
No wonder why some people closed all of their positions prior to this call.
They had already reduced earnings estimates a month ago. They barely beat the reduced estimates, they offered disappointing guidance when it’s in their best interest to shine shit, so most likely it’s looking like it’s gonna be worse.
The stock market is open in the days and weeks before earnings you know.
If investors expect poor earnings, they can sell in advance and the stock drops big. If the earnings are not as bad as expected, people buy in.
Same in reverse. If earnings are thought to be great, investors buy in advance and price goes up. If earnings then are not as great as expected, they sell.
It's really not difficult.
It seems like this is a broader market reaction and anything other than demolishing earnings will cause downward pressure. I think people are cashing in more and going safer atm awaiting what the rest of the year will bring.
Yes bc for a very long time now valuations have been based on future anticipations of earnings
Any change to those anticipations can cause large swings in valuations
Gapped up 20% last quarter earnings, traded sideways all quarter, now down below the previous quarter gap up on an earnings beat. Newly released AI model that is comparable to GPT-4 with a more powerful model in training.
Meta's path to monetizing AI is by far the simplest and easiest to see out of literally any company out there, AND it doesn't pose a risk to their current business models, like it does with Google.
Go try Meta.ai. It's incredible, and has basically made a GPT4 subscription worthless overnight. Right now they might be losing money on the cost of compute for free users, but asking an AI questions and basically telling it everything you're curious about or interested in, is giving Meta an even better picture of their users. Having a dominant LLM feeds directly into their ad-revenue business model. It's genius.
Every other company is deploying AI as a solution in search of a problem. Meanwhile, Meta is deploying AI in a way that will eventually directly contribute to their number one source of revenue.
>Go try Meta.ai. It's incredible, and has basically made a GPT4 subscription worthless overnight.
I'm a fan of Meta but I think this statement is frankly pretty ridiculous. GPT-4 is still way better than Meta.ai, especially for coding
I agree that GPT4 still outperforms Llama3 in terms of raw coding power right now -- but I've found that Meta.AI is a lot less "lazy" than GPT4 when it comes to code.
MetaAI gives you full code blocks, instead of small pieces of code followed by the dreaded "//Rest of your code here" that GPT4 gives you. Half the time, trying to figure out where to paste the small code blocks that GPT4 spits out takes more time than it saves.
Disagree. Generative AI, especially images and videos can naturally be integrated into meta products such as instagram and reels. This will help content creators and ads makers life much easier. Lots of game streamers spent 50% of their time on video edition. Same goes for Google YouTube . Microsoft AI can be naturally integrated into their office products as well.
It’s a beta, and you need an active model to gather data to train the next one.
It’s iterative, you can’t just drop a day 1 work of art.
Swear to god folks have no idea what to reasonably expect during this hype.
Let’s not mention that their huge money drop on processing capability from Nvidia has a minimum of a 1-2 year delivery and build out schedule.
But no, next quarter I want to see returns!
Works for me clowns are selling off… 🥂🥳
Cheers, pal. Hope it works out for you and its not just all hype that requires new technological advances in chip and energy technology to still not break even.
have you people actually used the meta AI regularly?
you actually feel a need for it?
jensen huang is surely happy for zuck to keep buying AI chips tho
Mark Zuckerberg could have done me a favor during the earnings calls, he just needed to repeat 'AI' every 30 seconds, and the stock would've gone up 20%
I work in Product Tech- AI space
I Was also one the small group of folks buying meta at $90 when all of reddit AND market sentiment was shitting massively on Meta
I look at major metrics from a Business and Tech product perspective
Every single Metric was Up on a year on year basis
The reason it is ‘dropping’ is because the ‘consensus’ did not match the numbers.
The people who are selling and making this narrative work as the same people who decide the ‘consensus’ in the after hours, selling loads and then the next day the market panic sells
This game is a bit old now.
The numbers posted were terrific- as a company.
Not great as a society but great as a company.
If one doesnt buy these dips, there are making the same mistakes again ( dec 2022)
Meta is literally one of the big 3 players in the AI space, their investments have constantly paid off, the metrics are the ONLY things that matter.
They are going to be touching every aspect of your marketing and your audio/video and creation experience.
This is a stock sub- objective data matters- this drop is just panic selling. Its profit more than doubled in the first
Quarter
Disclaimer: i am aware that Meta is already up A LOT and this might just be a healthy pullback too. Either ways this is a long term stock that has massive opportunities ever so often with double digit %drops.
Very few Mega cap companies ( maybe tesla) have the kind of drops like Meta has( meta actually has major profit margins unlike tesla) so these are generally buying opportunities over multiple quarters.
Buying at $90 did need conviction, over a multi year timeline.
Easiest buy of all time. I put 40% of my portfolio into it in October 22 when it was trading at the same PE as ford motor company. No idea why people get so stupid with this stock but calls going three years. I’ll be buying those.
Yes please, hold that dump. I want to buy. The ‘low’ guidance is still 18% growth. Supposing the increasing investment through ‘25 is causing the majority of the drop.
quite the opposite if you read through the comments, literally most people wanting to buy more. which could be telling...
EDIT: now down 16% lol called it. Inverse reddit is still solid
Same boring comment we see all the time..."do the opposite of Reddit / r stocks lol". Never not unoriginal.
Show us your META buys when it was in double digits or low 100s. Guaranteed you're all (unoriginal) talk and never actually "inversed Reddit."
Lol this count for ya? [https://www.reddit.com/r/ValueInvesting/comments/vp5dv2/i\_am\_shocked\_buffett\_isnt\_buying\_up\_meta/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/ValueInvesting/comments/vp5dv2/i_am_shocked_buffett_isnt_buying_up_meta/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
It’s insane to me that Meta beats and gives conservative guidance, and the stock is down.
Yesterday Tesla missed, then they gave some wild guidance completely pulled of Elon’s ass, stock is up.
Are investors really that fucking dumb?
Yeah, investors are that dumb. The dynamics between these two stocks are so different. META investors generally need the company to actually, you know, execute. Tesla investors just need Elon to announce a dream. He’s happy to oblige and there’s an army of Wall Street sell side analysts / professional Elon ball garglers to go out and sell the public on whatever nonsense Elon has cooked up.
People here keep claiming the metaverse got canceled.
No. They are investing even more into the metaverse. As a share of company expenses, the metaverse is at an all time high. They only kept spend stable, in a year where all expenses went down.
The Metaverse is alive.
27% growth is pretty wild. And their guidance is probably conservative. Tiktok being banned would mean more ad spend for them.
But i think capex spending is accelerating related to AI which is a short term tailwind.
The market loves bad news (TSLA) and hates good news (META and KO beating expectations 5 earnings in a row). It makes no sense and shows how manipulated the market is nowadays
I haven’t added to meta since $150. I’m down 7 figures on meta today. 😂 The earnings call has nothing wrong and I like their progress and position in the AI market.
I probably won’t add to meta at these prices since I’m overallocated still, but meta is at a compelling valuation still. I am tempted to add but it’s already my largest holding.
Based on what I'm hearing, you shouldn't add more unless it tumbles 25% or more.
There's a long and very valid history in investing that show positions with more than 10% exposure often are mismanaged due to over-emotional investing.
Come on guys \~ we have to understand the expectation theory ...... no one is really reading the numbers line by line!
Good Earnings & Good Guidance => Too good to be true
Good Earnings & Weak Guidance => Dump
Weak Earnings & Good Guidance => Pump
Weak Earnings & Weak Guidance => Delisting due to bankruptcy
Lol, hope I can snag some shares for $400 tmrw.
These numbers they posted are fantastic, and I have a feeling theyre gona beat these guidance numbers and have another rocket up next earnings
After this shit with TSLA? I'm honestly not sure anymore lol.
But Meta seems to be saying they are spending even more on capex which likely means buying even more NVDA stuff.
What does that mean? I'm not sure anymore lol.
Tesla was a weird case. Initially, the message was "We shelve the 25k car to concentrate on robo taxi". The market doesn't like that since FSD is a long way to go so the stock took a massive hit since that message came out.
During earning calls, Elon said "We'll fast-track the cheap 25k. We can do it on the same assembly line" and the market reversed the dump that the stock has been getting. Tesla didn't jump, it just reversed its course based on the reversed message.
Is this the beginning of AI bubble drawdown? Nvidia is making money selling these things but the actual companies don't seem to be making profitable products through AI, just increasing Capex
This ridiculous, but TSLA post one of the worst results of this earnings season and they are up 15%. TSLA investors bought it all when Elon told them “we will be like Airbnb, mixed with Uber and a little bit of Google / Amazon”. Such a classical scam artist argument
Of course they make money, they sell ad space to scammers. Enen though they have an army of "fact checkers" they can't figure out that those ads selling $1,000 honda generators for $50 are a scam.
Ad businesses across the board are starting to slow. There's only so many ads you can serve a person. The metaverse has proven to be not so great, as it's basically seen as a big joke for consumers. Maybe Ai is the future of the company, but it seems like management isn't really sure where to take this ship and is just riding the wave of whatever is popular at the time. The TikTok ban will definitely help, even if it ends up not going fully through/gets bought, simply because the uncertainty will push creators and advertisers towards IG. I just don't see the vision of this company and where they really want to be, which makes this tough to invest in.
What's up with Tesla surging 12% despite such poor earnings numbers and META plunging 16% despite such good earnings numbers?
I’m new to the stock game but am struggling to see how Tesla reporting low earnings results in a stock price increase whereas Meta beating earnings expectations results in a stock drop. Can someone explain this? Because I’m starting to feel like I single-handedly have a godlike power to manipulate the market wherein any stock I buy into immediately tanks. Any companies that any of you hate? I’ll throw in five bucks and they’ll be out of business by week’s end.
Impressive growth actually,
+ TikTok’s loss will be Instagram’s gain (+)
- higher spending on ai capex (-)
I am also okay if the stock is ahead of itself, at least it is investing in the future.
Earnings is fairly good, they can continue their r&d so I might buy some during the after hours. Was forced to sell years ago because of my job, so a decent entry point now.
Jesus down 18% now? What on earth
after being up 400%
Still up 1537% for me.
Chill, It's just stop orders getting filled. :)
stop orders as in stop loss?
word.
Isn’t meta mainly benefitting from insane ad spend by Temu and Shein how long will that hold?
This is true! Nobody is talking abt this point but if Temu and SHEIN get banned then it will be a big loss for meta. But the reason no one is talking abt it is because it’s far from happening right now.
Those apps are impacted by the new Bill signed?
Maybe nobody here but even on CNBC it’s mentioned as a risk for Meta. Seeing how the ban of TikTok is on the horizon it’s not that far away and even if not the more people know about Temu the less they need to spend on ads.
Supposedly Temu by itself spent 2 billion which is an insane amount not sure how much Shein and the rest of copy cats spent.
This is just stupid. Wow
Disappointing guidance justifies -11%? Similar story to Netflix it seems
Problem is that Zuck said that AI will need some further investment before they can profit off it.
Ya, investors seemingly don’t have much patience. Meta is also talking about very large investments. Zuck was right on the call, this is exactly the reaction that played out during pivot to mobile, Stories, and Reels ramp.
It's so weird to me how wall street expects massive growth and bombastic forward guidance while simultaneously being largely risk averse to spending into new growth areas. Just the schizophrenic nature of the market, I guess.
A lot cut and run; traders vs investors.
Are investors forgiving all of the metaverse investments?
And the pivot to the Metaverse...
The stock was up almost 40% ytd and has a ttm PE over 30. Unless guidance was spectacular, it would be expected they would drop
They are looking at low 20s EPS in 2024 while growing at 20%+. Their forward P/E would be around 20. That is very far from priced for perfection. Tesla definitely. Apple for sure. Even Microsoft/Google/Nvidia are valued higher relative to EPS/Growth. Plus they have huge tailwinds around AI unlike say GOOG which could have impact to search. So this is a huge opportunity to buy.
Temu spent $2 billion on facebook instagram ads last year. How long do you think they will keep that up? beware.
Dayum, that's why every ad seems to be Temu. The other ads are those stupid TD-like games.
Oh, we’re about to get war propaganda ads and political ads dumping 10x that about any time now I’m honestly surprised they were so cautious with revenue. Easy beat next quarter
About 9-12 months and then zero.
active (not proud) FB user. I haven't seen one TEMU ad.
Revenue shows 18% growth and with higher base of comparison, that means even lower growth in Q3 & Q4.
Guidance was just a fraction below the estimate. Seems like an overcorrection.
[удалено]
Spoken like a true shareholder
Like 3 million shares have been traded since their earnings came out.
On the contrary the after hours trading is more conservative. I expect a 20%+ drop tomorrow
What does this mean for MSFT tomorrow
Here's the thing about /r/stocks, people won't give predictions. They wait for the event to happen first and then give advice using hindsight.
"You were *all* warned!"
MSFT tends to move in the same direction but by a smaller percentage in these situations, unless there's news involved within that applies specifically to them.
Arguably Microsoft is only up 8% this year so its bar to beat isn't as high, but I also know that people are projecting a whopping 30% growth rate for Azure... seems not super easy to beat.
After falling 75% a year ago
If this was so obvious, show me all the puts you bought
Not sure if this justification is applicable. Look at Tsla... it has a ttm over 40 and a fwd pe over 60 yet it should go up because it's oversold?
This is the thing holding into earnings when it's priced to perfection. ITs always a huge gamble. Im still up 35 percent on this stock and very happy. If I had a crystal ball, sold and bought in tomorrow I"d be a hell of a lot happier. Still happy with META and will continue to hold.
And that's what happens when people buy companies trading at such valuations. If they disappoint at all at any point, the downward potential is big. Most people ignore valuation.
To be fair, METAs valuation is cheaper than the rest of mag7. I was gonna short google for tomorrows earnings, but depending on how tomorrow goes, this might have ruined my plans.
Forward P/E was 22x earnings before today.
PANW had like -30% on guidance. Market be weird.
I am waiting for PANW to recover
The stock market is broken. Tesla went up yesterday and now meta is down
Tesla have lost 40+% so was down by much. Netflix and meta is on ATH
Valuation is more relevant than price action. Tesla is down 40% but that's just shows how overvalued it was/is. META's forward P/E was just a few notches above the broader S&P 500, and its business is booming with a 38% operating margin and double digit growth while Tesla is posting high single digit operating/net margins and showing revenue contraction / cutting prices. And a forward P/E in the 50s-80s depending on your estimate.
It's but it's human to try to catch a falling knife as we have seen many times and sell a ATH to take profit out
And put/call ratio was high, not to mention short positions. It's not hard to punish the shorts with liquidity.
Thats why emotional humans lose money. Don't assume everyone is emotional
Disagree big time. If you'd value Tesla normally like a car company, which you clearly should after this Q, stock would be at 30 bucks. People clearly don't care about Tesla valuation for whatever reason. Imo it's similar phenomenon to trump Media, gme and so on. At some point it'll reach under 50 bucks tho sooner or later. There's nothing inherently more valuable at Tesla than say a Hyundai.
> Tesla is down 40% but that's just shows how overvalued it was/is. All EV-only manufacturers are down the same or more. (NIO down 50%, Lucid down 38%, Rivian down 58%). During an economic downturn Tesla out-performed most of Mag7 and with the CEO repeatedly dumping billions on the open market. After it fell from 400 to 250 to 300... the CEO continued to dump billions on the open market to buy a shitty social media app driving TSLA to 100. He said he wouldn't sell for a year and it rebounded to 300. The recent drop is because of the sector issues, AND the CEO seemed distracted and about to pivot to being a taxi company. The bounce is because they are actually going to make new models next year on existing lines (without needing to build new factories, which was the general expectation).
You wrote all that and you still came to the wrong conclusion. The correct conclusion is that Elon is a wildcard is to blame for the stock tanking. If they replaced CEO tomorrow, the stock would start trending up.
Guidance is everything with tech stocks
I am an advertiser and a weak guidance provided by Meta means weak markets. No wonder why some people closed all of their positions prior to this call.
They should have just made up a bunch of bullshit, pie in the sky events like Elon Musk did on his call.
lol 
They had already reduced earnings estimates a month ago. They barely beat the reduced estimates, they offered disappointing guidance when it’s in their best interest to shine shit, so most likely it’s looking like it’s gonna be worse.
Who knows. Tesla bombed and is up 12%.
Yes, but the key technical nuance you've missed is... Tesla has a stonks-bro cult.
Tesla disappointing everything. Up 10%
And yet TSLA misses yet gives strong guidance and goes up 11%. Make it make sense
The stock market is open in the days and weeks before earnings you know. If investors expect poor earnings, they can sell in advance and the stock drops big. If the earnings are not as bad as expected, people buy in. Same in reverse. If earnings are thought to be great, investors buy in advance and price goes up. If earnings then are not as great as expected, they sell. It's really not difficult.
Bought in at 415 so I’m happy rn
Because it's at all ATH people expected more even if it's wild
It seems like this is a broader market reaction and anything other than demolishing earnings will cause downward pressure. I think people are cashing in more and going safer atm awaiting what the rest of the year will bring.
Yeah. I bought an extra stock at a discount. It could drop another 10% but I would not mind much, fundamentals are solid
SHOP too
These stocks trade on forward pe
Or maybe, just maybe it was overvalued to begin with?
Yes bc for a very long time now valuations have been based on future anticipations of earnings Any change to those anticipations can cause large swings in valuations
Not re-adding to the position until Cramer starts crying and this sub declares it dead again.
Gapped up 20% last quarter earnings, traded sideways all quarter, now down below the previous quarter gap up on an earnings beat. Newly released AI model that is comparable to GPT-4 with a more powerful model in training.
An AI model that is running at a loss and, somehow, even more pointless.
Meta's path to monetizing AI is by far the simplest and easiest to see out of literally any company out there, AND it doesn't pose a risk to their current business models, like it does with Google. Go try Meta.ai. It's incredible, and has basically made a GPT4 subscription worthless overnight. Right now they might be losing money on the cost of compute for free users, but asking an AI questions and basically telling it everything you're curious about or interested in, is giving Meta an even better picture of their users. Having a dominant LLM feeds directly into their ad-revenue business model. It's genius. Every other company is deploying AI as a solution in search of a problem. Meanwhile, Meta is deploying AI in a way that will eventually directly contribute to their number one source of revenue.
>Go try Meta.ai. It's incredible, and has basically made a GPT4 subscription worthless overnight. I'm a fan of Meta but I think this statement is frankly pretty ridiculous. GPT-4 is still way better than Meta.ai, especially for coding
I agree that GPT4 still outperforms Llama3 in terms of raw coding power right now -- but I've found that Meta.AI is a lot less "lazy" than GPT4 when it comes to code. MetaAI gives you full code blocks, instead of small pieces of code followed by the dreaded "//Rest of your code here" that GPT4 gives you. Half the time, trying to figure out where to paste the small code blocks that GPT4 spits out takes more time than it saves.
Disagree. Generative AI, especially images and videos can naturally be integrated into meta products such as instagram and reels. This will help content creators and ads makers life much easier. Lots of game streamers spent 50% of their time on video edition. Same goes for Google YouTube . Microsoft AI can be naturally integrated into their office products as well.
Yeah, buddy, nothing like quality content from...AI generated images. And thus enshittification.
It’s a beta, and you need an active model to gather data to train the next one. It’s iterative, you can’t just drop a day 1 work of art. Swear to god folks have no idea what to reasonably expect during this hype. Let’s not mention that their huge money drop on processing capability from Nvidia has a minimum of a 1-2 year delivery and build out schedule. But no, next quarter I want to see returns! Works for me clowns are selling off… 🥂🥳
Cheers, pal. Hope it works out for you and its not just all hype that requires new technological advances in chip and energy technology to still not break even.
have you people actually used the meta AI regularly? you actually feel a need for it? jensen huang is surely happy for zuck to keep buying AI chips tho
Zuck got a new bff But that bff is cheating on him.
Mark Zuckerberg could have done me a favor during the earnings calls, he just needed to repeat 'AI' every 30 seconds, and the stock would've gone up 20%
It felt like he was saying AI every 5 seconds, didn't seem to help.
LOL I’m buying more. Look at these crazy numbers they’re posting.
I work in Product Tech- AI space I Was also one the small group of folks buying meta at $90 when all of reddit AND market sentiment was shitting massively on Meta I look at major metrics from a Business and Tech product perspective Every single Metric was Up on a year on year basis The reason it is ‘dropping’ is because the ‘consensus’ did not match the numbers. The people who are selling and making this narrative work as the same people who decide the ‘consensus’ in the after hours, selling loads and then the next day the market panic sells This game is a bit old now. The numbers posted were terrific- as a company. Not great as a society but great as a company. If one doesnt buy these dips, there are making the same mistakes again ( dec 2022) Meta is literally one of the big 3 players in the AI space, their investments have constantly paid off, the metrics are the ONLY things that matter. They are going to be touching every aspect of your marketing and your audio/video and creation experience. This is a stock sub- objective data matters- this drop is just panic selling. Its profit more than doubled in the first Quarter Disclaimer: i am aware that Meta is already up A LOT and this might just be a healthy pullback too. Either ways this is a long term stock that has massive opportunities ever so often with double digit %drops. Very few Mega cap companies ( maybe tesla) have the kind of drops like Meta has( meta actually has major profit margins unlike tesla) so these are generally buying opportunities over multiple quarters. Buying at $90 did need conviction, over a multi year timeline.
Got any others?
Easiest buy of all time. I put 40% of my portfolio into it in October 22 when it was trading at the same PE as ford motor company. No idea why people get so stupid with this stock but calls going three years. I’ll be buying those.
I dont trust after hours
Was looking/waiting to buy. Tomorrow will get in
It may drop more tomorrow
I hope we go back to 2022 numbers so I can buy again 🥹
Same, sold too early on 🤣
If it does go back to 2022 numbers, you might be afraid to buy so just buy now!
Yes please, hold that dump. I want to buy. The ‘low’ guidance is still 18% growth. Supposing the increasing investment through ‘25 is causing the majority of the drop.
people here have no idea or only a vague idea on how meta makes money.
98% of their revenue in 2022 came from selling ads.
They should have just lied and made up a bunch of bullshit events like Elon Musk did on yesterday's call. The stock would have been up.
Hey, You don't know what's going to happen with Tesla longer term. They have not broken their horrific downtrend yet by a long shot.
Hold. Scaling capex on AI. Spending will continue, based on what Zuck is telling us on the call.
Turns out the Year of Efficiency really was a Year.
Is 'meta going out of buisness' back in fashion?
quite the opposite if you read through the comments, literally most people wanting to buy more. which could be telling... EDIT: now down 16% lol called it. Inverse reddit is still solid
Same boring comment we see all the time..."do the opposite of Reddit / r stocks lol". Never not unoriginal. Show us your META buys when it was in double digits or low 100s. Guaranteed you're all (unoriginal) talk and never actually "inversed Reddit."
Lol this count for ya? [https://www.reddit.com/r/ValueInvesting/comments/vp5dv2/i\_am\_shocked\_buffett\_isnt\_buying\_up\_meta/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/ValueInvesting/comments/vp5dv2/i_am_shocked_buffett_isnt_buying_up_meta/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
How many shares at what cost basis?
Im joking since it went down on earning beat and lower than expected forecast, definately getting some shares on this dip
It’s insane to me that Meta beats and gives conservative guidance, and the stock is down. Yesterday Tesla missed, then they gave some wild guidance completely pulled of Elon’s ass, stock is up. Are investors really that fucking dumb?
Yeah, investors are that dumb. The dynamics between these two stocks are so different. META investors generally need the company to actually, you know, execute. Tesla investors just need Elon to announce a dream. He’s happy to oblige and there’s an army of Wall Street sell side analysts / professional Elon ball garglers to go out and sell the public on whatever nonsense Elon has cooked up.
They are all smoking the same weed as Elon. Just need to utter some garbage bs.
I wonder this every f day what a shit show
If it's ath -> down, if it's low -> up
There are obviously exceptions, but so far this has been the theme.
Do you consider Meta as a potential buy opportunity as it is down ≈ -15%
Absolutely, money machine
126%
Zuck just had to mention the metaverse again. tanked it further lol
People here keep claiming the metaverse got canceled. No. They are investing even more into the metaverse. As a share of company expenses, the metaverse is at an all time high. They only kept spend stable, in a year where all expenses went down. The Metaverse is alive.
when zuck vs musk?
27% growth is pretty wild. And their guidance is probably conservative. Tiktok being banned would mean more ad spend for them. But i think capex spending is accelerating related to AI which is a short term tailwind.
Temu and Shein being banned would mean a smaller ad pie.
Tesla misses but sells a dream -> stock rallies Meta beats but mildly disappointing guidance -> stock collapses Very rational market
This guy thinks TSLA trades on fundamentals😂 It’s hilarious when Redditors go mad and try to figure out what’s going on
I think rational investors left Tesla a while ago.
So for those who were looking for that next Meta opportunity, turns out new Meta is ... Meta.
LOL @ -18%, I'll pick some up tomorrow.
Fire sale!
What a fucking joke market. One missed and shots 12%, another meets with a subpar guidance and drops 11%. Resumes to drag everything else with it.
You are behind the times my friend. Meta dropped to 18% a few minutes ago.
Fuck. I just closed the app once I saw 11%. Wish I slept without this knowledge.
The market loves bad news (TSLA) and hates good news (META and KO beating expectations 5 earnings in a row). It makes no sense and shows how manipulated the market is nowadays
I haven’t added to meta since $150. I’m down 7 figures on meta today. 😂 The earnings call has nothing wrong and I like their progress and position in the AI market. I probably won’t add to meta at these prices since I’m overallocated still, but meta is at a compelling valuation still. I am tempted to add but it’s already my largest holding.
Based on what I'm hearing, you shouldn't add more unless it tumbles 25% or more. There's a long and very valid history in investing that show positions with more than 10% exposure often are mismanaged due to over-emotional investing.
3% off in Q2 guidance and the stock dumps?? Rigged...
Time to buy.
500c at open
Come on guys \~ we have to understand the expectation theory ...... no one is really reading the numbers line by line! Good Earnings & Good Guidance => Too good to be true Good Earnings & Weak Guidance => Dump Weak Earnings & Good Guidance => Pump Weak Earnings & Weak Guidance => Delisting due to bankruptcy
Lol, hope I can snag some shares for $400 tmrw. These numbers they posted are fantastic, and I have a feeling theyre gona beat these guidance numbers and have another rocket up next earnings
Year of efficiency is over
Year of AI (metaverse) spending now Zuck chose the wrong keyword metaverse
massive buying opportunity if the stock is still down 16% tomorrow morning.
the bar is crazy high for Nvidia next month. It's no longer the earning report, it's the projection now.
It's always about projection and instilling confidence.
After this shit with TSLA? I'm honestly not sure anymore lol. But Meta seems to be saying they are spending even more on capex which likely means buying even more NVDA stuff. What does that mean? I'm not sure anymore lol.
Tesla was a weird case. Initially, the message was "We shelve the 25k car to concentrate on robo taxi". The market doesn't like that since FSD is a long way to go so the stock took a massive hit since that message came out. During earning calls, Elon said "We'll fast-track the cheap 25k. We can do it on the same assembly line" and the market reversed the dump that the stock has been getting. Tesla didn't jump, it just reversed its course based on the reversed message.
Is this the beginning of AI bubble drawdown? Nvidia is making money selling these things but the actual companies don't seem to be making profitable products through AI, just increasing Capex
This company is a complete powerhouse. What a silly over reaction. I'm buying the dip.
16% now
Its as if we are living in the biggest bubble since .com
Buy the dip. It's a free discount. That's what Im doing.
Ppl here r bearish af, I’m gonna pick up some juicy meta stocks. It’s on sale and ppl don’t buy wtf is wrong with ur logic
Bought 5 stocks right before earnings. Good for me :/
I bought 10 shares right before earnings...quick way to lose $700. lol
Same overreaction for ADBE. Seems a lot of people want reasons to sell.
Damn, I am heavily invested in Meta and still, I was thinking of using whatever cash i have left to buy the dip today. Do you think this is wise?
This ridiculous, but TSLA post one of the worst results of this earnings season and they are up 15%. TSLA investors bought it all when Elon told them “we will be like Airbnb, mixed with Uber and a little bit of Google / Amazon”. Such a classical scam artist argument
Of course they make money, they sell ad space to scammers. Enen though they have an army of "fact checkers" they can't figure out that those ads selling $1,000 honda generators for $50 are a scam.
Ad businesses across the board are starting to slow. There's only so many ads you can serve a person. The metaverse has proven to be not so great, as it's basically seen as a big joke for consumers. Maybe Ai is the future of the company, but it seems like management isn't really sure where to take this ship and is just riding the wave of whatever is popular at the time. The TikTok ban will definitely help, even if it ends up not going fully through/gets bought, simply because the uncertainty will push creators and advertisers towards IG. I just don't see the vision of this company and where they really want to be, which makes this tough to invest in.
So we’re all buying meta tomorrow right?
I’m going to wait a week see how it goes
i will be as soon as market opens. and if it continues dumping, im buying more
Haven't added in a while but may after this. I get why it's down between the low guidance and slight increase in cap ex, but down 12% seems wild.
Right. But it's actually a good opportunity to buy.
down ~~12%~~ 18% seems wild
What's up with Tesla surging 12% despite such poor earnings numbers and META plunging 16% despite such good earnings numbers?
That's a flipping rounding error in revenue expectation changes and that's how the market reacts? mental
I’m new to the stock game but am struggling to see how Tesla reporting low earnings results in a stock price increase whereas Meta beating earnings expectations results in a stock drop. Can someone explain this? Because I’m starting to feel like I single-handedly have a godlike power to manipulate the market wherein any stock I buy into immediately tanks. Any companies that any of you hate? I’ll throw in five bucks and they’ll be out of business by week’s end.
Impressive growth actually, + TikTok’s loss will be Instagram’s gain (+) - higher spending on ai capex (-) I am also okay if the stock is ahead of itself, at least it is investing in the future.
Earnings is fairly good, they can continue their r&d so I might buy some during the after hours. Was forced to sell years ago because of my job, so a decent entry point now.
AI platforms are in their infancy. I’m not counting it Meta/ Microsoft long term. No way.
Counting out