To The Moon

It’s been a rough week for two of tech’s biggest names. Both $Meta Platforms, Inc.(META)$  and $Netflix(NFLX)$  delivered disappointing post-earnings reactions, sending their stocks tumbling and leaving investors wondering which, if either, is the real buy-the-dip opportunity.

Meta’s story sounds strong on paper. The company just pulled off a $30 billion bond sale, the largest high-grade corporate issuance of the year, with demand reportedly near $125 billion. That kind of appetite from bond investors is a signal that big money still believes in Meta’s long-term strength. Cash flow remains massive, the ad engine is healthy, and the push into AI tools is starting to matter.

So why did the stock fall? Expectations were stretched. Even with a decent revenue beat, forward guidance felt lighter than the market wanted. Spending on AI infrastructure is rising, the metaverse bets still sit on the budget, and investors decided to take profits rather than wait for proof.

Netflix is a different flavor of disappointment. Earnings came up short and a recent stock split could not keep the share price from sliding. Subscriber growth slowed in places where acceleration was expected. That opened the door to a quick rethink on how fast the streaming leader can grow from here.

There is still a silver lining. Netflix is finally creeping back toward a valuation that looks more reasonable against its own history. It continues to run at solid margins, owns a global audience, and its ad tier is a slow burn that could widen profits over the next few years. The question is whether investors are willing to sit through a few choppy quarters to get there.

Between the two, Meta feels like the sturdier balance sheet with more profit levers, yet it also carries heavier expectations. Netflix looks bruised, yet the path to sentiment repair may be shorter if results stabilize and guidance firms up next quarter. For anyone waiting on the sidelines, patience still feels like the right first move.

When strong businesses stumble, opportunity is usually nearby. The trick is paying a price that builds in a margin of safety instead of a margin of hope.

Where a buy-the-dip could make sense

Think in simple guardrails rather than exact pennies. Use your current consensus EPS numbers and plug them into these ranges so you are not guessing.

For Meta, many investors like to buy when the forward price to earnings ratio slips into the high teens or very low twenties. If you assume Street EPS around 20 dollars over the next year, an 18 to 21 multiple points to a rough buy window of about 360 to 420 per share. If you prefer cash flow, Meta starts to look interesting when the free cash flow yield hits 5 to 6 percent. Take your latest trailing free cash flow, divide by shares, and see what price gets you into that yield range. If the stock falls to that area, you are paying a quality multiple for a dominant ad platform that is investing in AI at scale.

For Netflix, a reasonable buy zone often shows up when the forward price to earnings ratio drifts toward 20 to 22 or when enterprise value to EBITDA comes back near the low-teens. If you pencil next-twelve-month EPS around 18 to 20 dollars, that maps to something like 360 to 440 per share as a first look. Another way to frame it is free cash flow yield near 3 to 4 percent for a business with durable global scale and an advertising kicker. If price weakness delivers either of those conditions, the risk and reward start to line up better.

These are not hard lines. They are lanes that keep you from paying top-of-cycle prices after a scare. Update the math with the freshest EPS and cash-flow figures you trust. If the stock trades inside those lanes and the business story has not broken, that is usually when buy-the-dip stops feeling like a gamble and starts looking like a plan.