Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Meta Platforms Likely To Find An Elliott Wave Bottom Soon

By EWM Interactive Stock MarketsJun 24, 2022 01:42AM ET
www.investing.com/analysis/meta-platforms-likely-to-find-an-elliott-wave-bottom-soon-200626230
Meta Platforms Likely To Find An Elliott Wave Bottom Soon
By EWM Interactive   |  Jun 24, 2022 01:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Meta Platforms (NASDAQ:META) needs no introduction. It is the biggest social media company in the world with over 3.6 billion users on its family of platforms. This means nearly half the people on the planet are using some of Meta ‘s services. No wonder the company is one of the most profitable businesses that have ever existed.

Unfortunately for its shareholders, however, Meta stock is down almost 60% in less than a year. The price reached an all-time high of $384.33 on September 1st, 2021. Yesterday, it fell below $156 a share. Apparently, Apple’s new privacy rules coupled with Meta ‘s huge spending on its Metaverse project scared many investors away.

Meta Looks Great Both Technically and Fundamentally

In the meantime, the company is still extremely profitable, financially sound and the leader in its field. From a valuation standpoint, the stock is cheap as well, trading at just 13 times forward earnings. A conservative discounted cash flows calculation easily arrives at a fair value for the stock higher than $200 a share. So is this a good time to buy some Meta shares? Let’s see what the Elliott Wave principle would suggest.

Meta Stock Weekly Chart
Meta Stock Weekly Chart

Apart from the textbook five-wave impulse between the 2012 low at $17.55 and the 2018 high at $218.62, this is not a pattern one sees every day. It turns out Meta stock has been in a correction since July, 2018. Wave I can be labeled (1)-through-(5), where the five sub-waves of (1) and (3) are also visible. The rest seems to depict a messy (a)-(b)-(c) flat correction, whose wave (a) is a running flat itself.

Wave (b), which travelled from $137.10 to $384.33, is an abnormally large a-b-c zigzag with a triangle in wave ‘b’. This means the current crash must be an impulse pattern in wave (c). And indeed, it can be labeled 1-2-3-4-5, whose third wave is marked i-ii-iii-iv-v. If this count is correct, wave (c) is almost complete. Once it is over, a major bullish reversal can be expected to mark the beginning of a new long-lasting uptrend.

Still Plenty of Reasons to Avoid Meta Stock, Though

So it turns out fundamental and Elliott Wave analyses both point north for Meta stock. We still have no plans to add it to The EWM Interactive Stock Portfolio, though. The reason has nothing to do with the above analysis. We simply don’t see Meta as a positive force in the world. Of course, there are the obvious benefits that attracted over 3.6 billion people to its platforms.

Unfortunately, Meta is also responsible for creating addiction to its services as well as allowing the spread of dangerous fake news on its platforms. While the former is ruining people’s lives in very subtle ways, the latter enabled dictators like Vladimir Putin to spread propaganda and split societies in democratic countries across the globe. And let’s not forget the Rohingya Muslims genocide in Myanmar, survivors of which are now suing Meta for $150 billion for amplifying hate speech against their minority.

What’s worse is that the Cambridge Analytica scandal, among others, showed Mark Zuckerberg’s complete disregard for the harm his company is doing. There are plenty of stocks that would make money for investors without also giving them a guilty conscience. To us, Meta isn’t one of them. There are things more important than money.

Original Post

Meta Platforms Likely To Find An Elliott Wave Bottom Soon
 

Related Articles

Matthew Weller
Dow Jones: All Eyes On 34,000 By Matthew Weller - Aug 17, 2022

After a solid day to start the week, the Dow Jones Industrial Average (Wall Street CFD) is gaining more ground today. The proximate cause for yesterday's comes from the US...

Tim Knight
Moving Above Averages By Tim Knight - Aug 17, 2022

Everywhere I look, folks are talking about how the S&P 500 is at its 200-day moving average again. I’m not sure what they’re talking about. To my eyes, it crossed over that a long...

Meta Platforms Likely To Find An Elliott Wave Bottom Soon

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email