Facebook (META) stock crash! Will it end here?
In the stock market's largest single day plunge, Facebook lost 26% of its stock value, and CEO Mark Zuckerberg's net worth dropped by $29 billion. While some are eyeballing these losses as an opportunity to buy META shares at a discount, we must ask ourselves, "Is this a great buying opportunity, or is this company on its last legs?"
It might seem like a stock-market overreaction to META's announcement that revenues were down by a mere 5%, it is clear that investors in the darling social media platform are jumping ship like rats! And, I don't expect the bleed-out to end anytime soon, so buyer beware!
META execs are blaming the competition from companies such as foreign-owned Tik Tok, but there's a bigger problem here that is more obvious, and that is the lack of consistency of messaging. Simply put, the somewhat surprising switch to the "metaverse", has investors scratching their heads!
Plus, on a macro scale, social media as we know it is, in a way, "old school", and even Tik Tok will be feeling the burn when users grow tired of their services, too! Google, however, is much more "cleanly" managed, so I would expect to see continued and steady growth there, so be on the lookout for buying opportunities there. However, avoid investments in META which are, and will continue to be on the "risky" side, in my opinion. Twitter too, may also be facing some sort of a break-up or reorganization, so sit tight on your money until 2023 to see what happens.
Meanwhile, the crypto market seems to be rebounding, and I think this year's lows are in, but watch it carefully, as prices can drop quickly in the short term after small gains, especially in the alt-coin areas. The biggest gains will be realized later this year, so this is a great year for new investors to get their feet wet with dollar cost averaging during the down periods.