Meta Stock Analysis: Outlook Post Thread Launch and Maximum Drawdown Quantitative Research

📌Meta (META) Maximum Drawdown (MDD) Analysis and Post-Thread Launch Trends

Maximum Drawdown analysis helps assess stock volatility and investment potential, allowing investors to identify price trends and potential trading points based on price graphs. Through this, investors can develop appropriate trading strategies to maximize profits.

📈Meta (META) Maximum Drawdown (MDD) Analysis Graph

📈Analysis of Meta (META) Stock Maximum Drawdown

Due to a sharp decline in Meta’s stock price in January 2022, the maximum drawdown increased significantly, maintaining around 50% drawdown from March 2022 to March 2023 before gradually decreasing while maintaining an uptrend. After the sharp decline in January 2022, the stock price has been gradually rising since December and continued to rise, breaking through resistance levels in March. The recovery speed has been relatively fast, given the substantial drawdown.

While the undervalued period is passing, buying at the lows has become difficult as the drawdowns are decreasing while companies like Nvidia, Apple, and others are still rising after breaking their all-time highs. However, it is believed that profits can still be made by following the trend and overcoming the resistance levels.

📈Trading Strategy

✔Meta’s Upside Factors

Meta has concluded the data breach lawsuits in Europe and compensated the victims.

Though the sales showed a downturn in the third quarter, a rapid surge of 12% was recorded in March 2023.

Meta’s new SNS thread surpassed 100 million subscribers within a day.

✔Institutional Opinion Research

Global investment bank Jeffrey’s analysis of Meta stocks selected Meta Platforms as their top preference among tech stocks. Meta Platforms’ stock is evaluated as undervalued and a good buying opportunity, with a Price/Earnings Ratio (PER) of 16, the lowest among big tech companies. The possibility of improved profitability through cost reduction is high, and there are expectations for several new businesses, including virtual reality (VR) headsets like Oculus.

✔Key Indicators to Watch

Confirming the Uptrend: Checking if the stock is rising while the drawdown is decreasing indicates a high possibility of continuing the upward trend.

Volume Analysis: Verifying if the trading volume is increasing. High trading volume shows active market participation and trading. Along with the uptrend, high trading volume can support the stock’s upward movement.

Buying Decision Timing: When the drawdown is decreasing, and the stock is rising with increasing trading volume, there is a high chance that the stock will continue to rise. In such cases, buying decisions can be made when the stock breaks past a certain level, such as surpassing previous highs or moving average lines.

🔥Caution in Trading

Meta (META) may have reduced drawdowns, making buying opportunities at lows scarcer, but the company’s future value is assessed to be high. However, there are risks involved, such as the success of the thread and overcoming numerous privacy regulations.

*Policy

This quantitative information is based on the subjective analysis of the quantitative team using objective data. As accuracy and completeness cannot be guaranteed, investors should make final decisions at their own discretion and responsibility. Therefore, under no circumstances can this material be used as legal evidence for customer’s cryptocurrency/stock investments’ results.

-QuantPro