What in the metaverse happened to Meta Platforms, Inc. (FB) this month?
More importantly, how do we interpret it? And what do we do from here?
An action is only as good as the opportunity to react. Let’s take a gander at the numbers.
Clearly, the company makes money.
And clearly the company has money.
No Pain, No Gain
A friend of mine who has a large portion of his portfolio in Meta Platforms stock came to my office the following day after the earnings report that sent the stock tumbling.
I knew he was coming to see me for some therapy after seeing the bloodbath he had endured the night before.
When I saw the earnings released on CNBC, my heart sank for him. I knew the alert had hit his phone. But I wasn’t going to call him. We all need a chance to digest discomfort.
The next morning, I went out and bought him a cold 12-pack and had it on ice waiting for him at my office. I knew I’d see him at some point that day.
When he finally showed up, it was like a little boy just lost his first puppy that he grew up with. But really, $100,000 of his account value had vanished in a matter of minutes.
We made light of it. After all, “it’s part of the deal.” You know the old saying, “You gotta be in it to win it.” But it still stings. Even after a few beers, it was still a painful blow.
I said to him, from a chart analyst’s position, I don’t see too much more downside from here.
But is this your chance to buy Meta at a deep discount?
I mean, I can always be wrong. Only death and taxes are a sure thing in life. But don’t take my word for it.
Check out the chart analysis for yourself.
Price is approaching a convergence of support. The 2018 high is aligning with a doubled long-term channel support structure.
We currently have a range of support from where the stock is trading at roughly $240 down to about $205, which should likely absorb 2022 selling pressures for the balance of the year.
This could be your area to own Meta if you’ve been waiting for it to go on sale.
As always, I strongly encourage you to consider for yourself if Meta Platforms could potentially be a fit for your long-term investment portfolio goals in addition to discussing the idea with your licensed financial professional prior to buying shares.
Rules to Live By
“We accept the love we think we deserve.”
― Stephen Chbosky
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.