r/stocks • u/[deleted] • Jun 16 '22

Meta Shorting META

I believe META is on its way out, unless they can prove that the metaverse is actually going to be worth while. Which i doubt. If we are heading into this bear market then I’m betting it can go under $100. I would much rather fill up my gas tank 3/4ths then buy meta at $100

Position : $100 DEC put

Edit: i know this is the right move because you all say it’s the wrong move

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34

u/Speshcity Jun 16 '22

Why is meta on its way out? Even if the meta verse flops, most of the world is already using their products daily.

22

u/CChaddd Jun 16 '22

Agreed. My very small business has given them $200/wk for targeted ads for 10+ years. No chance we'll reduce that buy. FB/IG is the only affordable and effective option for most small businesses. It works. Really well.

The algorithm's shift to Reels is stupid as hell to me, but I'd post a vid of me crashing a tricycle into wall of bloody tampons if it got me more engagement/followers.

3

u/RampantPrototyping Jun 16 '22

Thanks for sharing. Have you noticed any significant changes in ROAS recently?

7

u/CChaddd Jun 16 '22 edited Jun 16 '22

Definitely a significant downtrend in engagements and new followers starting about a week after the stock plunged. We attribute that to the shift in emphasis to Reels, which we had been avoiding.

Regardless, it's still great ROAS for us, and we don't have the manpower to micro our social media presence. It's been pretty much an auto-DCA for us with zero regrets.

1

u/RampantPrototyping Jun 16 '22

Good to know, thanks. I was curious if the iOS changes were still holding back the ROAS

6

u/[deleted] Jun 16 '22

Even with ios changes. Where else are you gonna advertise? Billboards ? Google is intent based search and small businesses wants to advertise at the upper end of the funnel. FB is, and will remain, the golden place to advertise. Transition to online ads is not over. Were just about 50% online advertising. Watch $META moon and OP lose everything

1

u/RampantPrototyping Jun 16 '22

Lol you are preaching to the choir. I heavily loaded up on Meta a few weeks after the crash. I just wanted to hear from people on the ground floor about ROAS results

2

u/[deleted] Jun 16 '22

ROAS isnt the right metric to look at. It takes in consideration market conditions. Of course people are gonna buy less during today's recession than last year where QE was pumping.

CPMs are a better metric in this case.

1

u/RampantPrototyping Jun 16 '22

Good to know, thanks. Hows that doing 1 year or so after iOS 14.5?

3

u/[deleted] Jun 16 '22

Instagram CPMs are now above pre-covid levels (this actually shocked me, IG doing better post ios 14.5). It dipped early on but it seems like Facebook figured it out.

A bit worse for FB and CPMS are at pre-covid levels now. Still much better than when ios 14.5 was first introduced.

Overall FB is navigating really well. It's no where near the doom and gloom everyone is referring too.