META(#FACEBOOK) weekly special report based On 1 Lot Calculation:
ARTIFICIAL INTELIGENCE (AI):
- AI: CHATGPT SPARKS AI COMPETITION AMONGST MAJOR TECH FIRMS. According to reports, only Microsoft, Alphabet and Meta are set to invest $90B into AI technology development.
- META (FACEBOOK) IN AI WORLD: Meta’s chatgpt like model, “Large Language Model Meta AI” known as LLAMA, was recently released to researchers. According to reports, the model is undergoing continuing development, although current results indicate the LLAMA model is better performing than the original ChatGPT 3 released earlier this year.
META (FACEBOOK): EVENTS AND ANALYSIS
- EVENT: Q2 EARNINGS REPORT (CONFIRMED JULY 26TH, 2023): Meta will be reporting its Q2 earnings report later this month. Revenue is expected to report $30.99B, a 7.6% increase on the revenue result from Q2 in the previous year. Net Income is set to print $7.60B, around 10% higher than the previous year’s Q2 print.
- META LAUNCHES TWITTER ALTERNATIVE “THREADS” IN ORDER TO GROW MARKET SHARE AND REVENUE: Meta has launched a Twitter alternative platform known as Threads, to directly compete with Twitter and grow Meta’s revenue and user base. They managed to get over 30 million subscribers in one day. Instagram has over 2 billion subscribers, with “THREADS” enabling easy transfer from one to another platform. Twitter, for comparison, has between 300 and 400 million daily active users.
- META CONTINUES COST CUTTING, EXPECTING A FURTHER 6,000 EMPLOYEES TO LAY OFF, RESULTING THE COMPANY LOWERING ITS EXPENSE ESTIMATES FROM ~$100B TO $86B: Meta is continuing its layoffs program, with the company expected to become more efficient. Profits have shown growth, with the declining expenses playing a pivotal role.
OTHER ANALYSIS:
- STOCK PRICE ACTION: THE STOCK HAS HAD AN ALL TIME HIGH OF $384.24. Meta was last trading around $290, and if full recovery follows recent all- time highs, the stock could see an upside of around ~32.5%. However, the stock may continue to decline.
- ANALYST OPINION: CitiGroup is targeting $360, Barclays forecasts $320, Evercore forecasts $350.
META(#FACEBOOK), July 7, 2023
Current Price: 290.00
Meta |
Weekly |
Trend direction |
|
384 |
|
350 |
|
320 |
|
260 |
|
245 |
|
233 |
Example of calculation based on weekly trend direction for 1 Lot1
Meta (Facebook) |
||||||
Pivot Points |
||||||
Profit or loss in $ |
94,000.00 |
60,000.00 |
30,000.00 |
-30,000.00 |
-45,000.00 |
-57,000.00 |
Profit or loss in €2 |
86,159.49 |
54,995.42 |
27,497.71 |
-27,497.71 |
-41,246.56 |
-52,245.65 |
Profit or loss in £2 |
73,494.92 |
46,911.65 |
23,455.82 |
-23,455.82 |
-35,183.74 |
-44,566.07 |
Profit or loss in C$2 |
125,658.73 |
80,207.70 |
40,103.85 |
-40,103.85 |
-60,155.78 |
-76,197.32 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:20(GMT+1) 7/07/2023
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