I Made $6,500 Trading Meta Stock Today – Here’s How

2 years ago
11

I Made $6,500 Trading Meta Stock Today – Here’s How

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I’m no trader….and I’m certainly no expert on the stock market…..BUT I was able to make $6,500 today trading META.

In this video I’m going to break down exactly how….and why I knew it was a good buy.

There were several indicators that led me to believe this stock was severely undervalued….and made me extremely confident it would go up (if not immediately, at least over the next few months).

1. Inside idea that they’re investing a lot into marketplace/shops to compete with amazon, ebay, and other ecom platforms.

The reason I knew this was b/c I dropship on facebook marketplace and facebook shops every single day….and have for the past 2 years roughly

….and so I’ve seen them (in real time) invest heavily into upgrading the platform and attempting to compete with these other eCommerce sites.

When they get this off the ground, they’ll be making 5% on EVERY transaction on the platform (which I knew would be a LARGE influx of revenue for the company).

2. With Q4 spending, the new year beginning, and lots companies wanting to start the year strong…..I knew there was going to be more spent on ads.

Yes, Tiktok has recently taken the lions share of company advertising….but it’s been starting to level out more and more.

Facebook and Instagram stood to benefit a lot from that…..plus the market as a whole was significantly down on them (if you took a look at their current stock price – and what it’s potential was from the past year and the past 5 year span).

a. This is NOT a great indicator of a good stock buy obviously….but it does show that their stock price had A LOT of room for growth (and it had been way up before)

3. Meta’s been going heavy into AI and AI gaming with things like meta quest (which is clearly going to be huge)…There’s a large opportunity here for growth in the coming years and the company will have a big role to play in that (I believe).

For this reason, I still think the stock is a great long term buy.

And if none of those 3 mattered….the 4th reason is the strongest reason they were a great buy…….the balance sheet

Meta’s balance sheet was very strong with a large difference in assets vs. liabilities.

Basically, that meant not only could they afford to continue to spend on R&D to expand….and be a leader in whatever sectors they chose (and we’ve already covered both eCommerce and AI Gaming as 2 examples of that).

But it also meant they could afford to acquire companies that might have posed a competitive threat….or even strategically acquire companies that might already be a step ahead of them in certain sectors.

Most importantly, it also indicated to me that even if we went into a recession in the coming years….Meta as a company would be able to withstand it well……simply b/c they had enough positive cashflow to stay a float and weather a major storm.

Plus, in a recession companies and other assets can be purchased for pennies on the dollar…..and Meta (as you can see from the balance sheet – has a lot of excess dollars).

Again, I’m NO expert in the stock market…..but in my opinion (as someone who runs a small company myself), the balance sheet is one of the most important things I want to look at before investing into ANY company long term.

All these things indicated that meta was extremely undervalued, the stock would go up significantly over time, and it was a great long term buy.

But when I got in at $113….and $133 per share respectively on each platform (and the stock hit $197), I decided to sell it all and realize my profits (which was just under 6.5K).

I never planned to sell this early. I actually planned to invest for the long haul.

But since there’s definitely uncertainty in the market at the current moment…..I thought it was smarter to realize some profit….and ultimately, I’ll just put some of my excess money in safer investments….as well as hold some cash in case I see other good opportunities come up.

Also, I want to hit home that I DON’T recommend trying to time the market. I also don’t personally recommend “trading”. There’s certainly people that can have consistent success doing that….BUT you and me are most likely NOT one of those people.

If you want to lose money….those are the ways to go.

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