META up 20% today, on top of huge gains over the past month, as I said would happen. It’s going back to $350 soon. TSLA up 30% over the past month, going back to $300. TUR is still falling, also as I said would happen.
As usual, the financial media wrong again. All those predictions of Facebook being the next Myspace are not looking so good, just like the last hundred times over the past 13 years that media has made this prediction. Maybe one day they will be right. The Silicon Valley layoffs were overblown. Companies are always firing and then later rehiring, independent of the strength of the overall US economy. In 2018 for example Amazon laid of hundreds of employees at its Seattle headquarters. It’s just that the media only focusses on layoffs, because bad news tends to generate more clicks. Announcements of tech companies hiring hardly ever makes news or is discussed on forums.
Between my Bitcoin trading method, 3x funds, Tesla, and Meta, Jan-Feb 2023 has been my most profitable start for the year ever, and almost all of my 2022 losses have been recovered.
The Metaverse notwithstanding, Mobile ads on Facebook + Instagram are a huge cash cow (same for Alphabet/Google ads). Meta’s PE ratio a month ago was just 12, making it half as expensive as Walmart and generating 2x more profit. It was a steal, and I positioned myself accordingly.
It also does not hurt that older people who use Facebook not uncommonly accidently click the ads, which ads up to a lot of unintentional profit, too. Same for Google ads, which over the past decade have been increasingly optimized to resemble and blend in with non-ad content, also making it easy for people to accidently click the ads, especially on a mobile device.