Meta Platforms – The lid is always open

Bastien Galushka,

After the October figures, the Meta share was already a problem at this point. Interestingly, the value actually reached the support at $89.37. The low was $88.09. Since then, things have improved.

Management also appears to have taken the fundamental points raised to heart. Or to put it another way: Investor pressure has apparently become so strong that management has taken action: 11,000 employees or 13% of the workforce are being laid off in order to cut costs. It remains to be seen whether this will solve the problems in the medium term. Massive spending on the Metaverse continues to be heavily criticized, and the lack of monetization of important apps like WhatsApp remains an issue.

The market is currently expecting lower earnings and cash flow in 2023 as well. Sales are expected to rise slightly more than 5% to $122.9 billion, earnings are expected to fall a healthy 12% to 7.94 euros per share. Free cash flow is between $15 billion and $16 billion. A significant improvement in key figures is not expected before 2024. Revenue should then improve to $137.3 billion and earnings per share should increase by more than 20% to $9.72. Free cash flow is expected to exceed $27 billion.

Based on these current estimates, the stock is currently assessed at PSRs of 2.6 and 2.3, P/E ratios of 15 and 12, and KCVs of 20 and 12 for 2023 and 2024 respectively. If analysts’ predictions come true, the stock would be priced low even after the recent rally.

Chart: Metaplatforms

Resistance levels: 122.53 + 124.67 + 128.53 + 138.35 + 154.25 USD

Support marks: 112.88 + 108.32 + 97.80 + 88.09

From a technical standpoint, the stock has now more than offset the price drop in October. However, the gap at $128.53 is yet to close. Rather, the stock is stuck below the EMA50. There is also a resistance zone between $122.53 and $124.67. Above that, the stock could start a further rise, narrowing the gap to $128.53 and recovering above $138.35 towards the breakout point at $154.25.

Already below $112.88, this timing becomes less likely. Below $108.32, expect selling in the direction of another price gap, but in this case down to $97.80.

Investors are looking to speculate on a continued rally in Meta Platforms shares can access WKN leveraged products HC2ALZ or HC2AM2 to put. Traders who, on the other hand, expect the correction to continue in the direction of the gap at $97.80 can use WKN leveraged products HC2HLX or HC2SLW Fall back on.

meta-platforms in EUR; Daily chart (1 candle = 1 day)

Observation period: 06/16/2022 – 12/22/2022. Historical observations are not reliable indicators of future developments. stock3 terminal

meta-platforms in EUR; Monthly chart (1 candle = 1 month)

Observation period: 01.12.2017 – 22.12.2022. Historical observations are not reliable indicators of future developments. stock3 terminal

Turbo Bull Open-Ended Warrants on Meta Platforms for speculation on rising stocks

Underlying WKN Selling price in EUR Base price in USD the sink Duration
Metaplatforms HC2ALZ 1h30 106.47 8.62 open
Metaplatforms HC2AM2 0.75 112.50 15.01 open
Source: HypoVereinsbank onemarkets; To: 12/22/2022; 11:00

Turbo Bear Open End Warrants on meta-platforms for speculation on a drop in share price

Underlying WKN Selling price in EUR Base price in USD the sink Duration
Metaplatforms HC2HLX 1.76 138.00 6.41 open
Metaplatforms HC2SLW 2.79 148.50 4:11 open
Source: HypoVereinsbank onemarkets; Status: 22.12.2022; 11:04 am

See more products on Meta Platforms stock or simply issue your own leveraged product. With directly to the stock3 terminal you can set up and issue your personal HVB ​​leverage product in just a few steps!

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The contribution Meta Platforms – The lid is always open appeared first onemarkets blog (HypoVereinsbank – UniCredit Bank AG).

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