Meta Stock - A storm is brewing 🌪 Here's what you need to know...
The connection between Zuckerberg and TikTok CEO Shou could cause major concern, impacting Meta stock prices 📉
As much disdain and utter disgust I personally have for Mark Zuckerberg…felt a review of Meta was relevant…promise I’ll remain unbiased. Meta is up 555% since November 2022…will trend continue? And Meta recently added the “Add your TikTok link to your facebook” page….this small detail may have big implications for Meta stock?! 🤔 This connect between TikTok and Meta appears to be relatively recent. Interesting considering the recent circumstances… makes you wonder if we are approaching a “sell the news” event…
Promise, we will remain unemotional towards this Meta review, even with personal skin in the game with the TikTok ban. If you are new to this page, my name is Timothy James, one of the millions of creators impacted by the TikTok ban. We have reviewed the economy, stocks and crypto for 4 years, building a community of 565,000 awesome people 🥳. 17 years of investing experience and a quantitative economist (though you will hear me say, the economy is not the stock market). The stock market leads the economy by about 4 to 6 months, generally.
Lets knock out some of the hard facts first. Meta’s free cash flow has been increasing at an eye watering rate, nearing $52 Billion for 2024, up from 2023’s $43B and 2022’s $19B1. Both annual and quarterly earnings generally trend upwards. Net margin Q3 2024. Net margin percent also consistently increasing up to 38.6%. A factor I dont like is the closely held shares, with only .16%…however this stock has been around since 2012, so its not unheard of. Finally, as terrible as it is for people, and a negative by product of Artificial Intelligence, 2023 was the first year Meta had mass layoffs, going from 86,480+ employees in 2022 to 67,320. However…layoffs are extremely bullish for stocks. It improves a companies bottom line and pays shareholders more. We had an entire series about this back in 2022. I expect this layoff trend to continue, not just for Meta, but most companies, sadly. The point of this paragraph: fundamentals are solid. However…there are some red flags 🚩 The bullish party may be nearing an end…