What happened to Facebook? Should you buy Amazon ahead of earnings today? Stock Market update 2-3-22
Description
Facebook threw a Hail Mary that was intercepted and run back for a TD basically yesterday. They bombed on earnings and whatever they could do bad - they did bad. The technicals are out the window on this one, but I do think you can pick it up at a historic low. It's moved from a growth stock to a value stock over night and IMO, no small business today is moving away from their Facebook advertising. I also think that while they are spending heavily on the metaverse, this will be a good investment long term (think about when they paid $1 billion for Instagram - BRILLIANT).
Snap and Amazon report earnings today after the bell so should you buy? I'm not as much a fan of buying AMZN ahead since they too have an advertising business that may slow and with AWS being the leader in cloud and Google and Microsoft saying they've increased their cloud businesses substantially, I don't see good news in the cards for Amazon. I do think they could increase the price of Prime or announce a stock split like Google did which would lift the stock, but I would rather wait and maybe after the fed rate increase I can pick it up around $2500/share.
Snap is interesting since it's around the price of it's IPO. They have pre announced they have issues with the IOS privacy block and they may be in the same situation as FB, but since Snap is not currently profitable, I think you're gambling. I don't think it's not a GOOD gamble, but I do think it's risky at best. If you have the guts - go for it.
Today I'm trading UVXY/SVXY and we will take a look at KOLD and BOIL since natural gas has been exploding with volatility of late.
United States
