Meta
Meta's Meteoric Rise: Unveiling Record ProfitsMeta (NASDAQ: NASDAQ:META ), the parent company of social media giant Facebook, is making waves in the business world after an impressive fourth-quarter earnings report that surpassed expectations and sent its stock soaring by 14% in after-hours trading. The company's robust performance is underlined by a tripled profit, a landmark first-ever dividend payment, and a $50 billion share buyback, signaling a newfound confidence in its financial position.
Financial Highlights
The financial highlights include earnings per share of $5.33, beating the expected $4.96, and revenue of $40.1 billion, surpassing the anticipated $39.18 billion. Daily active users (DAUs) and monthly active users (MAUs) also exceeded expectations, demonstrating the sustained growth of Meta's ( NASDAQ:META ) user base. The average revenue per user (ARPU) reached $13.12, outperforming the forecasted $12.81, showcasing the company's ability to monetize its user engagement effectively.
The impressive results are attributed to Meta's ( NASDAQ:META ) online advertising business rebounding from challenges faced in 2022. Sales surged by 25% year over year, reaching $32.2 billion, the fastest growth rate since mid-2021. Simultaneously, the company implemented cost-cutting measures, with expenses decreasing by 8% year over year to $23.73 billion. The operating margin more than doubled to 41%, reflecting increased profitability.
Net Income
Net income skyrocketed to $14 billion, tripling from $4.65 billion a year earlier. Meta's strategic decisions, such as the announcement of its first-ever dividend payment of 50 cents per share on March 26, illustrate its commitment to delivering value to investors. The company's cash and equivalents ballooned to $65.4 billion at the end of 2023, up from $40.7 billion a year earlier, further supporting its shareholder-friendly initiatives.
The bullish momentum continues a trend from 2023 when Meta's ( NASDAQ:META ) stock nearly tripled, reaching a record high in January. As of the latest trading data, Meta's( NASDAQ:META ) market capitalization has surged to almost $1.2 trillion, solidifying its position as one of the tech industry's heavyweights.
Sales Report
Sales in Meta's Reality Labs unit surpassed $1 billion in the quarter, underlining the growing importance of virtual reality. However, the virtual reality unit reported losses of $4.65 billion, emphasizing the challenges and investment required to establish a foothold in this evolving market.
Despite Meta's ( NASDAQ:META ) financial success, the company faces scrutiny from lawmakers, as CEO Mark Zuckerberg and other executives recently testified before the Senate Judiciary Committee. The hearing addressed concerns about child exploitation on Meta's family of apps, underscoring the ongoing challenges faced by social media platforms regarding user safety and mental health.
Future Outlook
Looking ahead, Meta ( NASDAQ:META ) anticipates first-quarter sales in the range of $34.5 billion to $37 billion, surpassing analyst expectations. The company remains committed to advancing artificial intelligence and the metaverse, with Zuckerberg emphasizing continued investments in these areas. Notably, despite growth, Meta's headcount decreased by 22% year over year, reflecting the efficiency achieved through organizational changes and layoffs.
Conclusion
In conclusion, Meta's ( NASDAQ:META ) stellar financial performance, marked by record profits, a historic dividend, and a thriving stock price, showcases the company's resilience and adaptability in the rapidly evolving tech landscape. As it continues to navigate challenges in user safety and content moderation, Meta's strategic focus on innovation and financial strength positions it for continued success in the ever-expanding digital frontier.
LI AUTO TP 35 BEFORE EARNINGS Li Auto, a China-based electric vehicle (EV) manufacturer, has been receiving positive attention from investors and analysts. Here are some reasons why:
Ambitious Goals: Li Auto’s management has set an ambitious vehicle-delivery goal1. They aim to sell at least 400,000 units of the Li L7, Li L8, and Li L9 in 20241, which would exceed their total of 376,030 vehicles sold in 20231.
Innovative Ideas: Li Auto is trying out an interesting idea similar to what Nio is doing1. This could be referring to Nio’s flagship showroom, known as Nio House, which is a unique vehicle showroom that resembles a home1.
Strong Partnerships: Li Auto has a partnership with Nvidia, where Nvidia’s Drive Thor autonomous driving chip will power Li Auto’s ET9 electric sedan1.
New Launches: Li Auto is gearing up to launch its flagship multi-purpose vehicle, the Li MEGA, on March 11.
Positive Analyst Recommendations: Li Auto Inc. Sponsored ADR currently has an average brokerage recommendation (ABR) of 1.10, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by five brokerage firms
TESLA BACK TO 208 AFTER FOMCGAP TO FILL
Technical Analysis: Bullish traders want to see Tesla receive a positive reaction to its earnings print and for the stock to surge up and regain support at the 200-day SMA1
Market Position: Tesla’s stock bulls have reclaimed key chart territory, fueling hopes that the 2023 uptrend has resumed
Innovation: Tesla is known for its ability to overcome odds and innovate, which has led to significant gains in the past
META EARNINGS - "Cant Cuck the ZUCK"Been advocating for the Zuck since November of last year, at around $100, the entire world was laughing at meta. The laughing has since ceased.
Here are some quick targets I expect to hit now that we have broken this double top, Earnings Thursday. 2/1
I am not going to do too much talking as everyone knows what Facebook is about, substantial holdings across the board. Poised for success in a future where everyone is tied to their electronics. Zuck controls the future narrative, Whatsapp, Instagram, Facebook, reality labs, JIO platforms, Portal, CTRL Labs, Mapillary.
You might not like the Zuck, but you must admit. "you cant cuck the zuck"
Support levels in purple.
First Resistance on earnings: $408.49
Target 2: $422.84
Midterm Target 1: $438.78
Meta's AI Power Play: Building a Chip Arsenal
In a strategic move to bolster its artificial intelligence (AI) capabilities, Meta Platforms ( NASDAQ:META ), formerly known as Facebook, is taking significant steps to integrate AI into its products and consolidate its research teams. CEO Mark Zuckerberg recently announced the company's plans to bring its AI research team closer to a business-focused generative AI team, emphasizing a commitment to infusing technology into its products. This move follows Meta's rapid mobilization around generative AI, a response to the success of OpenAI's ChatGPT chatbot in late 2022.
Chip Arsenal Expansion:
One of the key elements in NASDAQ:META 's AI strategy involves building an extensive chip arsenal. Zuckerberg revealed that the company is set to acquire approximately 350,000 H100 GPUs from Nvidia by the end of the year, with an additional 250,000 GPUs from other suppliers, making the total GPU count around 600,000. If achieved, this would position NASDAQ:META 's system as one of the largest in the technology industry. The company is not only relying on Nvidia but has also expressed plans to use chips from NASDAQ:AMD and has hinted at an internally designed GPU-like chip.
Generative AI Mobilization:
NASDAQ:META 's recent efforts signify a shift from years of leading AI research, notably through its FAIR team, to a more focused integration of AI into core social media products and AR/VR hardware devices. The establishment of a dedicated "GenAI" team last year underscores the company's commitment to harnessing generative AI. The commercial release of the Llama large language model, ad tools capable of generating image backgrounds from text prompts, and the introduction of the "Meta AI" chatbot accessible through Ray-Ban smart glasses highlight Meta's progress in this domain.
AR/VR-Driven Metaverse Vision:
Zuckerberg ties these AI investments to NASDAQ:META 's overarching vision of the metaverse, which prompted the company to rebrand itself in 2021. He emphasizes the need for new devices, such as glasses, to interact with AI within this envisioned metaverse. The ongoing training of a third version of the Llama model suggests Meta's commitment to advancing its AI capabilities in tandem with its metaverse goals.
Market Response and Technical Outlook:
Meta Platforms ( NASDAQ:META ) has seen strong development within a rising trend channel, indicating positive growth and increasing buy interest among investors. The absence of resistance in the price chart suggests further potential for upward movement.
Conclusion:
Meta's ambitious push into AI, coupled with the expansion of its chip arsenal and a focused approach to generative AI, underscores the company's commitment to staying at the forefront of technological innovation. As Meta integrates AI into its products and envisions a metaverse-driven future, the industry and investors alike will be closely watching the company's strategic moves and technological advancements.
META One more rally before correction.Meta Platforms (META) gave us an excellent bottom buy opportunity last time we looked at it (December 08 2023, see chart below) having hit already Target 1 (350.00) and currently going for Target 2 (384.50) following the Higher Highs break-out:
As long the Higher Highs trend-line holds, we expect a technical rejection at or slightly above the 384.50 All Time High (ATH) target and subsequent correction towards at least the 1D MA50 (blue trend-line). The last medium-term correction has been -8.70%, which gives us a minimum target of 351.00 on the downside.
If the decline extends, we can see a maximum (from a technical perspective) decline of around -15.75% (similar to October 26 and August 18 2023) that could test the 1D MA200 (orange trend-line) and will be the strongest long-term buy opportunity.
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DoubleVerify's Expansion at Meta Platforms Marks a Milestone
In the ever-evolving landscape of digital advertising, DoubleVerify ( NYSE:DV ) has recently made significant strides by expanding its brand safety and suitability coverage on Meta Platforms ( NASDAQ:META ), particularly within Facebook and Instagram Feeds and Reels. This strategic move not only solidifies DV's position as a leading software platform for digital media measurement but also underscores its commitment to fostering transparency and trust in the digital advertising ecosystem.
Meta Partnership and Revenue Impact:
The foundation of NYSE:DV 's success in this venture lies in its partnership with Meta Platforms, which was first announced in March 2022. The recent live implementation of brand safety and suitability measurement inside Meta's Facebook and Instagram Feed and Reels is a positive sign for NYSE:DV , indicating broader adoption within Meta platforms in 2024 and beyond. Meta currently stands as NYSE:DV 's largest social platform, contributing approximately $40 million in revenue, accounting for around 7% of DV's total annual revenue.
Financial Performance:
NYSE:DV 's financial performance in the September quarter is a testament to its growing influence in the digital advertising space. With a 28% rise in revenue to $144 million and a 33% increase in adjusted profit to 8 cents, NYSE:DV is demonstrating robust growth and resilience in a competitive market. The company's ability to adapt to changing industry dynamics and capitalize on strategic partnerships positions it as a noteworthy player in the digital media measurement sector.
Expanded Brand Safety and Suitability:
NYSE:DV 's expansion of brand safety and suitability solutions on Meta's platforms is a pivotal step in ensuring a secure and suitable ad environment for global advertisers. By leveraging its AI-powered classification technology, honed over 15 years of experience, DV provides advertisers with the tools to independently authenticate campaign quality and protect brand equity within user-generated media environments. The comprehensive coverage includes various Meta ad placements, such as Instagram Feed, Instagram Reels Ads, Facebook Feed, Facebook Reels Ads, Facebook in-stream video, and Audience Network.
Trusted Measurement and Transparency:
Meta's endorsement of NYSE:DV 's brand safety and suitability solutions speaks to the importance of fostering digital transparency and trust within advertising environments. Samantha Stetson, Vice President of Client Council and Industry Trades at Meta, emphasizes the significance of responsible marketing and Meta's delight in expanding partnerships with DV. Advertisers can rest assured with NYSE:DV as their industry-leading, independent, third-party verification provider, authenticating their Facebook and Instagram campaigns.
Technical Outlook:
From a technical standpoint, DoubleVerify's ( NYSE:DV ) stock exhibits strong development within a rising trend channel in the medium long term. The positive signal from the moving average indicator suggests continued upward momentum.
Conclusion:
DoubleVerify's ( NYSE:DV ) expansion of brand safety and suitability solutions on Meta's platforms marks a significant milestone in the company's journey. With strong financial performance, a strategic partnership with Meta, and a commitment to transparency and trust, DV is poised for continued success in the dynamic landscape of digital advertising. As advertisers seek reliable solutions to navigate the complexities of the digital realm, DoubleVerify ( NYSE:DV ) stands out as a trusted ally in ensuring the authenticity and effectiveness of their campaigns.
$META: interesting long setupVery nice setup forming here in $META, if it takes out last week's highs I think it can gain traction and likely do very well during Q1 2023 next. It's been basing and holding up with relative strength vs the broad market, which is a good sign, and also might benefit from a potential TikTok ban, as mostly $META and $SNAP control social networks used by Gen Z for the most part. Just a wild card, but interesting nevertheless.
Best of luck,
Ivan Labrie.
$META: bull market continues...Nice weekly trend in $META here...As Zuck's leadership continues to impress shareholders finally addressing the excess fat that needed to be shed, the company is well positioned to monetize the growth in Emerging Markets (India, with reshoring, Mexico...) that are heavy users of Whatsapp and would be a boost to revenues from monetization over time, while the Reality Labs call option gives it unknown but potentially huge upside long term. I liked the valuation at the bottom and I like the way things are shaping up on the way up, let's see how it goes.
Best of luck!
Cheers,
Ivan Labrie.
I am looking for a potential short here on META.As you can see here, we are not only approaching a supply zone on the daily chart for NASDAQ:META but we are also riding this trendline. I will look for a break of the trendline and enter a short swing. Remember, always risk what you are willing to lose. Thank you as always reading my analysis. God bless you.
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AMD?interesting chart. i have the AVWAP at the 52 week low showing confluence with the support trend line. after earnings and fed speak we broke out the channel. were coming close to geting above the 0.68 fib retrace from last high 132/133ish area.
were also tradin above the 200-100-50 moving averages
that can also be a giant bull flag and cup and handle and all those measured moves take you to key areas. idk if it gets there or when. but just a text book looking chart right now.
Navigating the Surging Tide and Unleashing Growth Potential
Industry Meta Platforms, the parent company of Facebook, has been making waves, with its stock surging an impressive 194% last year.
I. Unleashing Revenue Potential:
Meta's fiscal year 2024 consensus revenue growth of 13% appears conservative. There are several factors that could drive Meta's revenue beyond expectations, including product improvements, increased engagement through AI content distribution, and a rising demand from Chinese advertisers. The firm's optimistic target implies a 31% upside from Meta's recent closing price, making it one of the most bullish estimates on Wall Street.
II. Operational Efficiency and Cost-Cutting:
Meta's surge in the previous year was not solely fueled by market dynamics but also by strategic decisions to enhance operational efficiency. CEO Mark Zuckerberg dubbed it the "Year of Efficiency," and the results are reflected in the company's estimated operating expenses for 2024, ranging from $94 to $99 billion, compared to the $88 billion estimated for 2023.
III. The WhatsApp Advantage:
The use of WhatsApp and artificial intelligence as a game-changer for Meta. With more than 2 billion users, WhatsApp represents a significant potential catalyst for the company. Automating customer service through AI on WhatsApp could incrementally increase Meta's revenue base by a third over time.
IV. Technical Outlook:
From a technical standpoint, Meta Platforms has broken through the ceiling of its rising trend channel, signaling a potentially stronger rising rate. While short-term corrections are possible,
Conclusion:
In summary, Meta Platforms appears to be on the cusp of a transformative period, with buyers bullish on the stock. The combination of revenue-driving factors, operational efficiency measures, and the untapped potential of WhatsApp positions NASDAQ:META for a compelling future. Investors should keep a close eye on Meta Platforms as it navigates the tech landscape, potentially unlocking value beyond current market expectations.
Short $META at $350 down to $81 targetLike many of the other tech stocks META looks extended here.
I could see one more move up into the $350 region, and if it hits there, I think that sets up a good short opportunity.
Lots of people saying we're starting a new bull trend, but what makes me think that's not true?
In a bull trend, you see a slow rise up, not a 300% bounce in a year. That indicates to me that this move has been corrective and not impulsive.
I think we're nearing a top and once we hit it, I think it'll be a fast decline down to the $81 target on the chart.
I'll be playing this move through options w/ expiry into late 2024/early 2025
Big Tech Stocks: Macro Fib SchematicsThis one might be a doozy to look at and I understand. However... Companies that make up trillions of dollars of the broader market are obviously going to be extremely complex using Mathematical Fib Schematics.
These schematics were NOT easy to organize and lay out together so give me a break.
Each one of these companies has MULTIPLE Fib tools on each of them. This is called Fibonacci Clustering. You can also call it a cluster F***...
All I can say for this one is, You either see it or you don't. I am certain of the veracity of these charts so I don't care what plebs have to say about how this looks. I am the ONLY person who has ever laid this out so perfectly you will EVER see. Quote me on it because good luck finding this material literally anywhere on the internet unless you break into Blackrock's HQ.
Easter Egg: Click Logarithmic mode on NIVIDA for an extra Fib view of why NIVIDA topped out where it did.
Meta - Buy The DipHello Traders, welcome to today's analysis of Meta Platforms.
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Explanation of my chart analysis:
During 2022 Meta Platforms declined massively and dropped more than -70% all the way down to the previous support at the psychological $100 level. From there we saw a pump of more than 250% after which we could now see a short term pullback followed by new all time highs.
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I will only take a trade if all the rules of my strategy are satisfied.
Let me know in the comment section below if you have any questions.
Keep your long term vision.
APPLE BACK TO 182 SOLID POSITION Long Position:
Key Points:
Strong Fundamentals: Apple has a history of solid financial performance, driven by its diverse product ecosystem, including iPhones, iPads, Macs, wearables, and services. The company's consistent revenue and earnings growth make it an attractive option for long-term investors.
Services Segment Growth: Apple's services segment, including the App Store, Apple Music, and Apple TV+, has been a significant contributor to revenue. Continued expansion and growth in the services sector can provide a more stable revenue stream for the company.
Innovation and Product Pipeline: Apple's commitment to innovation, evidenced by new product releases and technological advancements, keeps the brand at the forefront of consumer technology. Anticipated releases and advancements in products like the iPhone and wearables can drive excitement and demand.
Share Buybacks and Dividends: Apple has a history of returning value to shareholders through share buybacks and dividends. Share repurchases can contribute to stock price appreciation, and dividends provide income to investors.
Stock of the Month: Vertex (VRTX)Our portfolio is up by more than 15% in the month of November. We are strictly following Mark Minervini's Trading Methodology. Here is a quick summary:
Mark Minervini's trading methodology, often encapsulated in his SEPA (Specific Entry Point Analysis) system, is a comprehensive approach to trading that emphasizes the importance of timing, risk management, and stock selection. Here’s a concise summary:
Trend Template: Minervini looks for stocks in a strong uptrend, using specific criteria for moving averages and price action to determine the health of the trend.
Volatility Contraction Pattern (VCP): He identifies stocks undergoing a VCP, a series of tightening price consolidations which often precede a significant breakout.
Risk Management: He sets strict stop-loss orders to limit potential losses, often using a maximum risk threshold per trade to manage overall portfolio risk.
Buy Points: Minervini waits for a proper pivot point before entering a trade, ensuring the stock is moving on high volume out of a sound base pattern.
Leadership: Preference is given to market leaders, stocks that outperform the market with strong earnings growth, sales, return on equity, and profit margins.
Market Direction: He trades in harmony with the overall market direction, increasing exposure during bull markets and preserving capital during bear markets.
By focusing on these key principles, Minervini aims to capture significant trends, minimize losses, and compound gains efficiently. Remember, this strategy requires discipline, continuous learning, and the ability to adapt to changing market conditions.
Stock of the Month November: Vertex
Detailed Technical Analysis
Price and Moving Averages : The price of VRTX has recently experienced a bullish breakout. It is trading above all key moving averages (MA), including the 50-day, 100-day, and 200-day MAs, which are aligned in ascending order—a bullish signal known as a 'golden cross'. The 50-day MA is often used as a short-term trend indicator, and its position above the longer-term MAs suggests a strong upward trend.
Volume : There's a noticeable increase in volume accompanying the price rise, which is a positive sign as it indicates strong buying interest.
Moving Average Convergence Divergence (MACD): The MACD line is above the signal line and above zero, which is bullish. The histogram is showing increasing momentum to the upside.
Relative Strength Index (RSI): The RSI is above 70, which typically indicates overbought conditions. However, in strong trends, the RSI can remain overbought for extended periods.
IBD Ratings: The IBD (Investor's Business Daily) ratings show a high relative strength rating of 93, suggesting that the stock is outperforming 93% of all other stocks in terms of price performance.
Bollinger Bands: The price has moved towards the upper Bollinger Band, which could signal that the stock is overextended in the short term.
Support and Resistance: The chart shows previous resistance around the $360 level, which appears to have been decisively breached and may now serve as support.
Candlestick Analysis: The recent candlesticks show strong bullish bodies, which confirms the buyers' control.
Price Targets: If you're using chart patterns for price targets, the recent breakout suggests a continuation of the uptrend.
Potential Risks: The overbought RSI readings could indicate a potential pullback or consolidation in the near term. Additionally, the elevated volume on up days should be monitored to ensure it doesn't start declining, which could signal a weakening trend.
Here is a link top our updated portfolio:
www.tradingview.com
🔝 Nasdaq-100 Index: The House of Rising SunThe History is happening right here! ✨
Nasdaq-100 Index NASDAQ:NDX just set its Best First Half in almost 40 years since inception in 1985, with amazing 38.75% year-to-date return in 2023.
Among all semi-annual results, Nasdaq-100 gain this year is second only to the year of 1999.
With historical 61.44% gain in the second half of 1999, glory times shortly ended. Just two months later in the 1st quarter of 2000 index peaked at 4816.15, for the next 15 plus years.
As 38.75% surge in 2023 still far away from the All-the-history record 61.44% in 1999, stocks feel this year like they are, as the great 1960's band "The Animals" said, in the House of the Rising Sun. They won the race, and closed the 1st half of the year with solid gains.
Let's take a look and congratulate the winners of the race! ✨
🥇 The 1st place - Nvidia Corporation, 184.84% YTD return NASDAQ:NVDA
Nvidia is the clear winner in the AI arms race so far. It's the company that appears best positioned to dominate the burgeoning sector, and more and more investors continue to wake up to the potential of artificial intelligence.
Nvidia effectively provides a one-stop shop for what customers need to drive their AI ambitions. They control their entire ecosystem on both hardware and software, similar to Apple, and that puts them years ahead of competitors.
🥈 The 2nd place - Meta Platform Incorporation, 133.66% YTD return NASDAQ:META
Meta Platforms stock jumped this year after the tech giant's first-quarter earnings beat Wall Street's expectations. CEO Mark Zuckerberg also touted the tech giant's AI plans, and pledged to keep costs low as the owner of Facebook, WhatsApp and Instragram continues its "year of efficiency."
In a post-earnings call, Mark Zuckerberg hailed the company's AI efforts and vowed to keep a lid on spending. The Meta founder and CEO said AI recommendations had led to people spending over 24% more time on Instagram since it launched TikTok rival Reels.
🥉 The 3rd place - Tesla Incorporation, 120.88% YTD return NASDAQ:TSLA
Tesla's stock price has been rallying non-stop for months - and Wall Street is starting to ponder whether that breakneck surge might've made the EV stock a little overvalued.
Shares have jumped 57% since late April, with investors cheered by CEO Elon Musk signing charging deals with Ford and GM, while Big Tech stocks have also soared more broadly thanks to the rise of AI as an investment theme.
The stock just has settled its best two-quarter advance since 2020.
But Barclays, Morgan Stanley, and Goldman Sachs have each questioned that valuation over the past two weeks, with all three banks slashing their Tesla rating from "buy" to "hold".
Unprecedented dominance
It's historically rare for a handful of stocks from the same sector to make up such a large part of the S&P500 ( SP:SPX ).
The last time the five biggest companies by valuation accounted for a quarter of the index's total market cap was indeed the 1960s.