Meta Faces Historic Stock Rout After Facebook Growth Stalled

This quarter’s sales forecast also disappointed Wall Street and Chief Executive Officer Mark Zuckerberg, who saw his personal wealth potentially plummet about $24 billion, acknowledged that Meta is facing serious competition for user time a

Proactive Published 04/02/2022

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Comment of the Day

Video commentary for February 3rd 2022

A link to today's video commentary is posted in the Subscriber's Area.

Some of the topics discussed include: Amazon earnings were positive as expected but guidance is not as strong, bond yield rising everywhere, Euro bounces back, European energy crisis is the biggest contributor to inflation, gold rebounds from intraday low, gold shares cheap.

Meta Faces Historic Stock Rout After Facebook Growth Stalled

This article from Bloomberg may be of interest to subscribers. Here is a section

The dour outlook and stalled user momentum mark a dramatic turnaround for a company that has posted share gains in every year but one since its 2012 IPO, stoking concern that Meta Platforms flagship product and core advertising moneymaker has plateaued after years of consistent gains.

“These cuts run deep,” wrote Michael Nathanson, an analyst at brokerage Moffett Nathanson, who titled his note “Facebook: The Beginning of the End?” The results were “a headline grabber

and not in a good way.” Zuckerberg said Meta’s rival to TikTok, Reels, is growing quickly, but monetization has been slow. He asked investors for patience as the product ramps up.

“Over time we think that there is potential for a tremendous amount of overall engagement growth” with Reels, he said on a conference call Wednesday. “We think it’s definitely the right thing to lean into this and push as hard to grow Reels as quickly as possible and not hold on the brakes at all, even though it may create some near-term slower growth than we would have wanted.”

My view - Does anyone remember Vine? It was the big short form video app of the early social media age and folded because it could not think of a way to make money. Musical.ly and later TikTok slid into that niche and effectively captured the generation Z demographic.

ECB Is Said to Prepare for Potential March Policy Recalibration

This article from Bloomberg may be of interest to subscribers. Here is a section:

European Central Bank policy makers can envisage recalibrating their outlined policy path in March, according to officials familiar with their thinking.

The Governing Council agreed on Thursday that it’s sensible not to exclude the possibility of an interest-rate hike this year, said the people, who asked not to be identified because their discussions are private.

An end of bond-buying under the ECB’s regular program, the APP, is possible as early as the third quarter, the officials said. No decisions have been taken.

An ECB spokesman declined to comment. ECB President Christine Lagarde refused to repeat at her press conference that a rate increase was very unlikely this year, highlighting more persistent-than-expected inflation pressures in the 19-nation bloc. Investors brought forward bets on a liftoff while she spoke.

My view - This graphic from the Nordea highlights the fact that European inflation is all about energy. Raising interest rates doesn’t do much more to curtail demand than high prices are doing already so the ECB is understandably reluctant to rush into action.

Looks Like There's a Whale Snapping Up Gold Bullion Below $1,800

This article from Bloomberg may be of interest to subscribers. Here is a section:

That would suggest that whoever is buying is able to buy in scale, leave little footprint in the market and then take delivery and store the metal in secure, invisible vaults. And that points strongly toward a sovereign buyer.

Central banks normally declare to the IMF the amounts of metal they have on their books. But there are precedents where this has been done with some delay. Between 2009 and 2015, China reported no change in holdings, only to reveal that it had bought 53 million ounces of metal over the period.

My view - Gold habitually ranges for long enough to try the patience of even the most ardent bulls. When it breaks out, it usually takes most traders by surprise. That’s the biggest lesson I’ve learned from trading the metal for nearly twenty years.

The Chart Seminar 2022

With global vaccination rates rising, the prospect of anti-COVID pills on the horizon and the promise of travel restrictions being dropped, it is time to start thinking about venues for The Chart Seminar in 2022.

Please drop sarah@fullertreacymoney.com a line if you would be interested in attending an event next year, as well as your preferred location.

At present I am looking at a late May date for a London seminar and I am open to other times and locations subject to demand.

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