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Meta: Not Good For Growth Or Value

Mar. 02, 2022 3:22 PM ETMeta Platforms, Inc. (META)RBLX174 Comments
Damon Verial profile picture
Damon Verial


  • Facebook's userbase has finally stopped growing.
  • Despite having 2B active daily users, Facebook remains fragile, as did AOL at its peak.
  • Meta is putting too much focus on the yet unproven metaverse, which could cannibalize Facebook in multiple ways.
  • A spin-off would solve this problem, but that's unlikely to happen anytime soon. Instead, investors should see FB as a ticker with two very different companies trading on it.
  • This idea was discussed in more depth with members of my private investing community, Timing the Market. Learn More »

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Despite the trade idea it contained having worked out exactly as stated, my last article, "Peak Facebook" garnered much criticism from Meta (FB) bulls. In this article, I would like to expand on my bearish thesis

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This article was written by

Damon Verial profile picture
Damon Verial is a statistical analyst who uses his skills to research stocks, options, and investment strategies. In addition, Damon is the writer of Copy My Trades, a trade-alert, subscription-based newsletter, available at his personal website. He is also the writer of Exposing Earnings, an in-depth earnings prediction service here on Seeking Alpha. . Damon makes his living as a gap trader, an earnings trader, and an interday trader. In his free time, he writes for Seeking Alpha, where he focuses on seasonal investing, market timing, and earnings analyses. . Damon has written several successful stock analysis algorithms, including algorithms that can predict gap closure, intraday patterns, and news overreactions. They will soon be publically available for subscribers. .Damon’s undergraduate education was in statistics and mathematics at the University of Washington; his graduate education was in psychology at National Taiwan University. He currently lives in Fukuoka, Japan.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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