The stock market closed higher today, despite an expected 0.75% Fed rate hike.
S&P 500 increased 2.6% to 4,024, while NASDAQ was up 4.1% to 12,032.
In other news, shares of Facebook (FB), or is it Meta, today after hours are looking weak after the company lowered guidance.
The bad news from Meta or Facebook (whatever it’s called today) shouldn’t have surprised anyone. The stock has been crap for a while now. I like to call their metaverse, the metacurse.
– David Sharek, Founder of The School of Hard Stocks
Tweet of the Day
https://twitter.com/ecommerceshares/status/1552395568412073984
Chart of the Day
Here is a one-year chart of FB as of May 7, 2022. Notice profit growth was -18% in the prior.
The company FB changed its name to Meta in October 2021.
Meanwhile, the company continues to spend like a wildfire on the up-and-coming metacurse. And in the end, FB does not have the software capable of running a high-tech app like they are trying to build.
FB is not owned in client accounts at this time, but I have it on the radar for the Growth Portfolio. My Fair Value P/E stays at 20 this qtr. The stock seems to be a value here. But with the stock market in a Bear Market, it will be tough for FB to gain momentum.
The leaders in the alternate reality world are Roblox (RBLX) and NVIDIA (NVDA).
