META-philia! Zuck’s Virtuality About to Get Real! (META)

Meta Platforms, Inc. (NASDAQ:META), which used to be Facebook, remains, in our view, the world’s biggest time-waster.

But today, in its new iteration, as owner of Instagram and numerous other apps and blips, the company has entered the world of the criminal, providing a full service menu to those who seek underage encounters and child pornography.

It’s not a nice thing to discuss, and it won’t wear well on META, either, we say.

In this pushback world of Bud Light and Target boycotts, we’ve a hunch the META is about to drink the poison.

And it comes at an opportune time.

Because insiders appear to be getting antsy.

That is, over the last six months, insiders, those with the best view of the company’s prospects, have sold $49 million worth of stock—$20 million of which was unloaded in just the last four weeks!

Here’s the rest of the company’s fundamentals…

• P/E is currently 31.80, BUT analyst consensus is for that number to shrink to just 18.18 by next year.  That means either a 40% decline in stock value, or a 75% jump in earnings.
• As for earnings, they SHRUNK this year by 33.60%, and…
• Shrunk by 19.20% Q/Q.

• There’s no Dividend to speak of, and…
• Price to Book is an unwieldy 5.49.

Perhaps those insiders feel the company isn’t focused enough, trying to take on AI, Virtual Reality Headsets (vs. Apple) and creating a rival to Twitter all at once.

Not good.

We, too, see the time as appropriate for a META-sized drawdown.

Now, have a look at the chart—

May the Al-mighty Living G-d of Israel cast all evildoers into the pit!

With kind regards,

Hugh L. O’Haynew

Follow @HughLOHaynew