Facebook’s parent company Meta suffered one of the worst single-day losses in market history as its shares slumped by 26.39 percent. The sell-off in the tech company’s shares started as a result of disappointing quarterly earnings reports that failed to match analysts’ expectations.
Meta had missed estimates on revenue, operating income and even its daily average user base. The company has also predicted its slowest growth for the upcoming quarter, which has spooked investors.
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Many experts have also highlighted the fact that the US Federal Reserve’s hawkish stance has led to investors scrutinising the stocks they are investing in. The wildly different results of fellow tech stocks like Alphabet, Apple, Netflix, and Paypal have also made investors act more emotional, as seen in the sell-off that ended the weekday global rally.
Opportunity for Indian investors?
While Meta’s stock has taken a beating, its ‘discounted’ price provides an opportunity for Indian investors to buy one of the world’s biggest stocks. The question is whether they should take that opportunity.
Investing in US stocks brings exposure to some of the biggest companies in the world for investors while also giving Indian investors the double benefit of rising shares with a weakened rupee to the dollar, which means that they earn more for their investment.
While many stocks may be costly for a per-share price for Indian investors, fractional investing can help many purchase stocks of companies like Apple, Microsoft, Tesla and more.
But what about Meta shares?
According to Bloomberg data of analysts, the stock has 49 Buy, 11 Hold, and 2 Sell recommendations with an average target price of $340. The current price of Meta shares is $237.76. It was at $323 at previous close.
But, as many would suggest, Meta’s sell-off is not over.
Experts like CNBC’s Jim Cramer recommended that investors exercise patience before trying to pick up Meta shares at a discount.
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“I’m not telling you to buy Meta-Facebook . Not yet,” Cramer said. “When you have an emotional market ... the selling will not be like normal selling. It gets angry. It’s chaotic, and it’s extra irrational. It won’t necessarily be over in a day.”
“I say Meta-Facebook will be a buy because eventually the sellers do get exhausted... and this will be no different from the last three times I said to buy, and everyone laughed,” Cramer said.
(Edited by : Amrita Das)
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