After $META's earnings were released today, META dropped around 25% in the premarket. This brings META's current valuation to the valuation it had in 2015 (despite the fact that META's latest quarter produced a net income over 6 times what it had earned in 2015).
Evidently, META is currently trading at a large discount, at roughly 2 times its book value, with a heavily discounted price-to-earnings ratio of 8.31, and an RSI of 24.45 on the weekly chart.
The bearish argument for the company is that it is burning cash on its recent pivot to the metaverse, which many see to be a failed venture, but this argument was clearly priced in prior to the release of earnings, so in my view, the crash from earnings is very superficial and could revert easily and quickly.
I opened a long position at around 100, and aim to close my position around 125
Evidently, META is currently trading at a large discount, at roughly 2 times its book value, with a heavily discounted price-to-earnings ratio of 8.31, and an RSI of 24.45 on the weekly chart.
The bearish argument for the company is that it is burning cash on its recent pivot to the metaverse, which many see to be a failed venture, but this argument was clearly priced in prior to the release of earnings, so in my view, the crash from earnings is very superficial and could revert easily and quickly.
I opened a long position at around 100, and aim to close my position around 125