Price fell almost 80% from its top. A simple reason for this fall could be a fall in earnings and profit margins. Net margins fell from 40% to 15%. That is a fall of 60%. Retained earnings fell from $85B to $67B, a fall of 20%. Total fall comes to 80%. I do not know if it is a coincidence or an actual reason. Assuming this is the reason. Stock recovered more than 50% from its low. It means the market is expecting a good quarterly result. If it falls to do so then we can see a fall in META stock again. Supporting the fact, 15% net margin is lowest in the margin cycle of META. In summary we should wait for results to get a fair price of stock.
Disclaimer
This is not financial advice. Sumanyu Aggarwal is not an expert.
All figures are just rough estimates.
Disclaimer
This is not financial advice. Sumanyu Aggarwal is not an expert.
All figures are just rough estimates.