META Likely bottomed
- Thread starter Master Pu
- Start date
Nvidia Leads Chip Stocks Higher on Meta’s Planned Tech Binge
https://finance.yahoo.com/news/nvidia-leads-chip-stocks-higher-213221084.html
Buried in a gloomy earnings report from Meta Platforms Inc. was a bit of good news -- just not for the Facebook parent company.
The shares of companies that supply data centers gained after Meta Platforms said it’s planning to spend even more on components next year as it invests in infrastructure to support its push into digitally immersive experiences.
In its third quarter earnings report, Meta Platforms projected capital spending of $34 billion to $39 billion in 2023, up from $30 billion to $34 billion this year. The comments sent Nvidia Corp. and Marvell Technology Inc. up more than 3% in postmarket trading.
Arista Networks Inc., which makes networking gear used in data centers and counts Meta as one of its biggest customers, is up more than 7%.
“Amidst increased question/concern that Meta would significantly reduce their forward capex guide in conjunction with third quarter results, tonight we got the absolute opposite,” Wells Fargo analysts led by Aaron Rakers said in a report.
While Meta’s spending plans are a boon to its suppliers, it was received poorly by investors skeptical of the high costs associated with its strategic shift. The stock dropped 14% after the company projected weaker-than-expected sales in the current quarter.
I didn't think you traded long straddles.
Are those long term, like 3month+, to avoid decay?
Or is it part of something like a dbl cal/diagonals?
I am long a bunch of time flies and they behave like a KO call. I have silly risk upside so I typically buy combos against my local futures hedge. Short futs -> face ripping rally -> long combo gives me an upside stop.
Will need to study this now eheh
Thank you.
I edited my above post as I thought they might have been part of a bigger picture.
No, it's a stop against my short futures (in this case). And they are in the same tenor as the D1 vol-position. (D1 = fronts, D2 = backs).
It is funny that people are wishing Meta would be more like Apple right now even though Apple was practically a dead company with $2 dollar stock after the dot com crash making over priced computers that seemed to have no future at the time.
Who knows what the bottom is here though as they are pot committed and all in on Reality Labs. It is really hard to see how the stock doesn't get punished further each quarter into next year with louder and louder cries to pivot away from Reality Labs that will be ignored.
I will be getting more for sure but there is absolutely no rush to buy.
What can't be valued here is the way React and Pytorch came about by trying to solve problems with Facebook and what will come from trying to solve an even bigger problem like the metaverse. Not to mention that is basically an impossible sell to the average investor who has no idea how much they use React every day.
People reading about how much meta sucks now even though so many are reading the story in a React app is pretty hysterical.
Who knows what the bottom is here though as they are pot committed and all in on Reality Labs. It is really hard to see how the stock doesn't get punished further each quarter into next year with louder and louder cries to pivot away from Reality Labs that will be ignored.
I will be getting more for sure but there is absolutely no rush to buy.
What can't be valued here is the way React and Pytorch came about by trying to solve problems with Facebook and what will come from trying to solve an even bigger problem like the metaverse. Not to mention that is basically an impossible sell to the average investor who has no idea how much they use React every day.
People reading about how much meta sucks now even though so many are reading the story in a React app is pretty hysterical.
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How did the strategy work out? You had that position in place on Thursday, and of course, as if you predicted it, we had a face-ripping rally on Friday. How much pain did you prevent by having that stop-o-strat?