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The earnings report from Meta Platforms Inc. (NASDAQ: FB) gave investors quite the scare Thursday with "weaker-than-expected" revenue growth.
It's the first time Meta has pulled the curtain back on its massive new division, Reality Labs, which is responsible for R&D and implementation on the metaverse. It's a huge money sink, for sure - reported net losses for the past three years are in the neighborhood of $21 billion.
FB shares tanked 26% in the sharpest single-session drop in company history. They were still dropping by early Friday.
But let me tell you something: I don't scare easy.
You've got to spend money to make money, as the saying goes, and Meta's money is going to one of the biggest technological development trends of the century. The metaverse is already a $48 billion industry as of last year, and both Emergen Research and Bloomberg analysts put its potential value at around $800 billion by 2028.
Frankly, they can afford to take the losses in order to future-proof their growth. And when their plans come to fruition, the sky will be the limit.
That's why Meta is still one of my number one buys this week. Sometimes, bottom fishing is great fun, and with FB trading 26% off its highs, anyone who buys in now will get a discount on one of the most profitable companies on the markets.
So, take the plunge before everyone else gets wise - but make sure to use the trailing stop I give you in today's video to secure your gains.
Click below to grab this play and three bonus trades...
Here are the trades I discussed in the video, in case you need them:
- Buy Meta Platforms Inc. (NASDAQ: FB) and place a 15% to 20% trailing stop.
- Buy Paypal Holdings Inc. (NASDAQ: PYPL) and place a 15% to 20% trailing stop.
- Sell Charlotte's Web Holdings Inc. (OTC: CWBHF).
- Buy Archer-Daniels-Midland Co. (NYSE: ADM).
I know a lot of you are worried about how to safeguard your wealth right now. And no one could blame you... these are hardly "normal" times.
But the truth is, you have the chance to make amazing profits in 2022, whether the markets trade up, down, or sideways. That's because three massive events are converging at once into a super-wealth opportunity of historic proportions with the potential to create $5 trillion in new wealth and send three stocks soaring 300% to 500% in the next six months. Get all the details - including the stock tickers for free - in my recent "State of the Markets" address. Click here to watch.
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About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.