Jan 26rd 2023 Free Analysis - META

Hey Investors!

We’re rounding the corner and getting ready for the weekend. And since it’s my wife’s birthday this weekend I’ve got some planning to do. So let’s jump right in:

THIS WEEKS MOVERS SNAPSHOT

Meta (Stock Ticker: FACEBOOK) - Today’s mover is Meta, known as facebook (I’m still not onboard with their new name 🤦🏽‍♂️). Meta is known for Facebook, but they also own Instagram, Whatsapp and Quest among others. They’re also very invested in augmented reality and focused on defining our existence in the digital world. So love it or hate it as a brand there may be some opportunity here.

Why Meta?

Meta’s current size market value is $465.5 billion (that’s A LOT of numbers) and they’re expected to grow to $1.089 TRILLION by 2027. I know what you’re thinking, “Now we’re just making up numbers!” One trillion sounds like the number you would say when you were a kid before someone else said “INFINITY!”. But believe it or not, for Meta one trillion is a real expectation based on their current trajectory.

To understand why, you have to understand what their main business is. Meta is above all an advertising platform. And the advertising business is expected to grow 22.32% by 2027. And since Meta is one of three top online advertising platforms, it makes sense that Meta’s stock will see a jump over the next few years. As a matter of fact Meta, Google and Amazon make up 74% of all digital advertising with Meta having 24.1% of that. 🤯 Isn’t that crazy?!

Why we feel there’s a buying opportunity:

They’re reporting their Q4 (Sept-Dec 2022) earnings on February 1st and it’s expected to be good. According to Jefferies Investment Bank (a large bank that invests in and analyzes these types of stocks), Meta is expected to be the best performing stock of 2023. They believe Meta’s focus on cutting costs should help the company grow revenues. That would in turn translate into a higher stock price.

TERMS YOU NEED TO KNOW

Annualize - This is the process of taking numbers that represent a time period of less than one year and extending them to cover a full year. For example if you made $10k each month at work so far this year, annualized that would come out to $120k ($10k*12 months). It can be useful to compare one year to another even though the year isn’t done yet. A WARNING, annualizing income or a rate of return is not always dependable. If you lose your job and stop making $10k a month, your ACTUAL income for the year will be less than the annualized $120k. So when you see annualized, know that it’s not a guaranteed number

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.

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See you on Thursday!Thibaud & PhilipFun fact about us: We love talking investments even when we're not working