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11-27

🦁 META: The "Value Trap" or the Best Deal in the Mag 7? 🚀

The Setup

Meta finally woke up yesterday, surging nearly 4% and leading the Magnificent 7 pack. But the price action isn't the most interesting part—it's the valuation.

💡 Why I’m Watching $Meta Platforms, Inc.(META)$  $Meta Platforms, Inc.(META)$  Closely:

The PE Discrepancy: Meta currently holds the lowest PE ratio among the Mag 7. In a market where tech valuations are stretching into the stratosphere, Meta is looking surprisingly "cheap." Is this a mispricing by the market, or is the fear of their massive AI CapEx spending justified?

The "Gap" Play: Technical traders know that "gaps tend to fill." The violent drop after the last earnings miss left a massive gap on the chart. With this recent momentum, the price action seems magnetically drawn to fill that void.

Bad News vs. Price Action: We had bad news (earnings miss) and more bad news (debt issuance), yet the stock is stabilizing and pivoting up. When a stock stops going down on bad news, it’s usually a bullish signal.

📉 The Bear Case:

The market is punishing Zuckerberg for spending heavily on AI infrastructure without immediate ROI. If the "Year of Efficiency" is truly over, margins could compress further.

📈 The Bull Case:

Advertising revenue is still a cash-printing machine. Buying Meta at this PE is essentially getting the core business at a discount, with the AI potential thrown in as a free call option.

🗣️ Discussion:

I’m looking at the post-earnings gap as the first target.

Are you buying this dip?

Or is the debt issuance a red flag for you?

Let me know your price targets below! 👇

#Meta #Mag7 #StockMarket #Investing #TechStocks #BuyTheDip


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META Cuts Metaverse Budget: Can it Close Its Earnings Gap?
Meta CEO Mark Zuckerberg is reportedly considering cutting the metaverse division’s 2026 budget by up to 30%. According to Mizuho analysts, if the rumored scale of the “budget cut” is accurate, it could boost Meta’s 2026 EPS by around $2, potentially driving a significant rally in the stock. After Meta’s recent earnings report, the stock plunged sharply, leaving behind a large earnings gap. If the stock manages to fill that gap, Meta could return to $750. Would you continue to hold it? Is it still a good idea to add to the position now?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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