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: Q1 2023 EARNINGS REPORT (CONFIRMED APRIL 26, AFTERMARKET): During the previous earnings call, CEO Mark Zuckerberg highlighted that Meta will be integrating Artificial Intelligence into their Ad services. Additionally, investors will be focused on any updates regarding Meta’s own chatgpt like product LLAMA, which is only available to researchers at the moment. The company is expected to release a public model in the near future.
- SOCIAL MEDIA PLATFORM TIK TOK MAY BE BANNED IN THE US ACCORDING TO REPORTS, WHICH COULD BRING MORE USERS BACK TO META: Meta platforms could stand to gain more subscribers if US president Joe Biden follows through with a proposed ban on tik-tok in the US.
- META CONTINUES COST CUTTING, AS IT LAYS OFF ANOTHER 10,000 EMPLOYEES, WITH THE COMPANY EXPECTED TO SAVE ~$6B AS A RESULT: Meta is continuing its layoffs program, with the company looking to become more efficient. Profits are also expected to grow as the company continues to cut costs and streamline its operations.
- META PRODUCT USER GROWTH CONTINUES, AS THE COMPANY ADDED ANOTHER 100 MILLION USERS IN 2022: Meta continues to grow its user base, with the company now boasting 3.74 billion users as of Q4 2022. Since Q1 2020, the company has seen a total user growth of 750 million people, which is about 25%.
OTHER ANALYSIS:
- STOCK PRICE ACTION: THE STOCK HAS HAD AN ALL TIME HIGH OF $384.24 AND IT CURRENLTY TRADES AROUND 44% BELOW IT. Meta was last trading around $215, and if full recovery follows recent all- time highs, the stock could see an upside of around ~78%. However, the stock may continue to decline.
- ANALYST OPINION: Citi is targeting $260, JP Morgan forecasts $270, Evercore forecasts $305. Bloomberg Consensus Price target is $228.78.
META(#FACEBOOK), April 10, 2023
Current Price: 215.00
|
Meta |
Weekly |
|
Trend direction |
|
|
310 |
|
|
270 |
|
|
235 |
|
|
197 |
|
|
183 |
|
|
170 |
Example of calculation based on weekly trend direction for 1 Lot1
|
Meta (Facebook) |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
95,000.00 |
55,000.00 |
20,000.00 |
-18,000.00 |
-32,000.00 |
-45,000.00 |
|
Profit or loss in €2 |
87,055.33 |
50,400.45 |
18,327.44 |
-16,494.69 |
-29,323.90 |
-41,236.74 |
|
Profit or loss in £2 |
76,434.15 |
44,251.35 |
16,091.40 |
-14,482.26 |
-25,746.24 |
-36,205.65 |
|
Profit or loss in C$2 |
128,273.75 |
74,263.75 |
27,005.00 |
-24,304.50 |
-43,208.00 |
-60,761.25 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:30(GMT+1) 10/04/2023
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