Recession cancelled?

Market anticipation leads to new bullishness!

Author

Atreya Sinha
February 03, 2023

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Dow Jones(-0.11%) S&P 500(+1.47%) Nasdaq(+3.25%)

Boi-oh-boi this week was insane! There was soo much anticipation for the Fed to raise 25bps, that the market reacted in the most calculated way possible...hehe. Bulls demolished the bears, squeezing the stocks to recover from their trenches.

A cryptocurrency is not a currency, not a commodity, and not a security - Charlie Munger

A lot of companies reported earnings this week,

  • AWS revenue in 2022 ($80 billion) was higher than the revenue of 457 companies in the S&P 500.

  • Meta shares popped 23% on Wednesday after the social giant reported earnings, making second-best trading day in nearly a decade.

  • Apple sales drop 5% in largest quarterly revenue revenue decline since 2016 .

  • Alphabet misses on earnings and revenue as Youtube falls short.

  • Ford posts full0year net loss, ugly fourth quarter citing 'execution issues'.

  • Starbucks misses expectations as China Covid surge hurts international sales.

  • Qualcomm revenue falls 12%, guidance implies more pain this quarter.

As the US unemployment rate hit 3.4%, its lowest level since 1969, Zuckerberg gained a record $12.5 Billion in a day as META rebounds. U.S. economy added 517,000 jobs in January, most since July 2022.

Elon Musk says twitter will share ad revenue with creators for ads that appear in their reply threads(Blue subscribers only) and Google invests $300M in artificial intelligence start-up Anthropic.

👀 Eye-popping

💫 Position of the Week - Meta(META)

We started in investing META around the second week of November 2022. Since then META has been in our top 10 holdings, skyrocketing our returns.

Here are some of the reasons why we believe META stock is still a great buy.

  • Global Reach: META has a tremendous global reach, with over 2 billion monthly active users in almost every corner of the world. This provides investors with access to a huge and diverse customer base, which can potentially lead to substantial profits.

  • Robust Platform: META is a robust platform that is constantly evolving and adapting to changing consumer needs. Its wide range of services, from messaging and video streaming to virtual reality, ensure that it remains a key player in the industry.

  • Potential for Growth: META's growth potential is tremendous. Its user base continues to expand and its products are becoming more and more popular. This provides investors with an opportunity to capitalize on the company’s potential for future growth.

  • Low Risk: META’s stock is relatively stable, with its price fluctuating only slightly over the past five years. This makes it a low-risk investment option with the potential for long-term returns.

  • Diversification: Investing in META stock provides investors with an opportunity to diversify their portfolios. By investing in different companies and industries, investors can minimize their risk and maximize their returns.

In conclusion, META stock is an attractive option for investors looking to get the most out of their investments. With its global reach, robust platform, potential for growth, low risk, and diversification, we recommends META stock as a great buy.

Best Regards,