![]() ![]() Just a few days ago, Avi posted this to our members: Yes, a large price area, but the potential was just the beginning. 21, 2022, that projected a potential target zone overhead from $202-$287. What happened shortly after that? Note Avi's chart from Dec. Avi calculated a $90 target for the low the eventual low was $88.11, struck just a week later. One of these moments was towards the end of October 2022 when the majority of the crowd was "freaking out" about META's stock price. These are generally pivotal moments in time for the stock. However, there will be brief moments when he "pops" into StockWaves to provide an extra point of view into a stock. Now, granted, Avi is typically focused on our market service as well as writing and educating others about the correct application of Elliott Wave theory. Also, Avi Gilburt has recently contributed an update to a chart that he posted back in October of last year. Let's dive a bit deeper into what the structure of price on the META chart is telling us. However, based on Lyn's analysis and our own charts produced by Zac Mannes and Garrett Patten, although we're not outright bearish in the long term for META, it would appear that this is a good place to turn cautious, ergo the "hold" rating for now. Having Lyn Alden as one of our lead analysts gives us an extra edge to find high-probability setups for both buys and sells. That's the place that we call StockWaves. Overall, I have neither a conviction bull or bear view on Meta Platforms, and I consider there to be clearer risk/return investments on the market." Where Fundamentals Meet Technicals Specifically, they've drawn down their cash reserves significantly, while also tapping into debt markets. They burned significant cash pursuing the Metaverse/VR concept, which thus far has not paid off, and has new entrants (e.g., Apple) entering the competitive fray. "More concerningly, the company has had an unclear capex strategy that doesn't exactly inspire confidence. Meta, however, is already trading at a rather rich valuation relative to its forward growth prospects (over 23x forward price/earnings) and thus seems to agree with and take into account that growth potential." "On one hand, consensus analysts expect a resumption of growth. "Meta's fundamentals suggest a very unclear forward outlook, which by extension makes the risk/reward not too attractive." Here are some of her recent comments to members of StockWaves: Looking at the fundamentals with Lyn gives us a solid thesis that we can then mesh with the technical picture. What facts have helped us come to this conclusion? What's the likely path for price going forward? Also, we will briefly discuss the difference between one person's opinion vs. We might even affirm that Meta Platforms ( NASDAQ: META) has spent itself into a " hold," as that's how we have it rated for the moment. By Levi at StockWaves produced with Avi Gilburt
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