 Oh my god, meta was down more than 30% in the past 6 months, what is going on? Is meta companies slowing down? Is it time to sell off meta right now? If you are a meta investor and you are feeling worried right now, or if you are thinking about investing in meta, but you are just a little bit concerned about the current situation right now, then keep on watching. Hi, everyone, I'm Okaily. This is Chloe and welcome back to my channel, the only one place for you to learn about stocks, investing, as well as options. If it's the first time of you coming to my channel, remember to hit the subscribe button as well as the notification bell so that you will not miss out any of my future investment insights. An early thumbs up is also appreciated because it will help to tell you to algorithm that you find this video helpful and it will actually help to push out to more people so that to inspire them to start investing safely. Meta, originally called Facebook, has been facing tons of headwind ever since Apple announced its privacy protection policy since last year. And in the recent earnings, its Facebook users are decreasing for the first time. Many investors were spooked by the news and led to a messy sell-off causing Meta's share price to drop more than 20% in just one single day. But seriously, is the drop even justified? Or is it actually overreacting right now? Well, let's delve into the quarterly earnings and check it out. Firstly, if you look at advertising revenue per user, as well as the total revenue per user, both of the metrics have been growing year on year. In fact, in the recent quarter, it recorded a 20% year-on-year growth as compared to the previous year fourth quarter back in 2020 December. Net income and earnings per share are also generally increasing but if you're concerned about the recent drop in EPS, this is mainly due to Meta spending more money on R&D as well as sales and marketing. In the earnings call, Mark Zuckerberg mentioned that they're actually pouring a lot of resources into its project Reels, which is a similar nature to TikTok so that Meta can use Reels to retain and attract more young users into its platforms. Well, this is not the first time that Meta shamelessly copying other company's good features and adopting onto its platforms. For example, if you think about Snapchat back then, actually Facebook wanted to buy over Snapchat because its story is able to attract a lot of young users. However, when the founder refused to let Mark Zuckerberg buy over the company, Facebook decided to invent its own stories and thereby grabbing more users back to its platforms. Think about it, even the name is identical. Apart from developing Reels to come back TikTok, Facebook is also pouring more resources in its social commerce as well as the future of Metaverse. Although these two projects are still far from being tangible, especially the future of Metaverse, it makes every single sense and every single sense to actually pour resources into this area because this is where the future growth lies. But then you must be thinking Facebook users are dropping from 1.93 billion to 1.929 billion. Wow, the drop really sounds like a lot. Well, if you look at things in a more holistic perspective and actually analyze based on the world's population, Facebook already dominated close to a quarter of the whole world's population. Not to mention that Facebook is actually banned from China, removing 1.4 billion users immediately from the world. So if you exclude China, 1 in 3 people in the world are already using Facebook. How do you expect Facebook as a platform to continue to grow its users rapidly when the market is already pretty much saturated? So I do not disagree when people say that Facebook is no longer a growth company. However, I would back to defer if they talk about Meta as a company, it is not a growth company. Because Meta itself has more than just Facebook, it has Instagram, it has WhatsApp and it has the reality lab, which is the future of Metaverse. And you can see the family daily active users are still growing, although the growth is not fast. But then once again, it's also because the world is already pretty much using Facebook, Instagram and WhatsApp. But what makes Meta such a great investment at the current price is because it has actually built up such a strong economic mode and network effect over the years. Not to mention that it's a cash cow by itself generating tons and tons of revenue very consistently using the current advertising business model. As you can see, it's free cash flow as well as operating cash flow has been increasing consistently over the years. And this company almost has zero debt. It's super balance sheet. It's definitely able to help this company weather all kinds of crisis and on top of that use the cash to fund its additional projects such as reality labs. When the future of Metaverse become more concrete this will be another growth story for Meta. My target entry price for Meta is $275 and with the recent drop in share price due to the emotion instability of most investors out there I personally feel that this is such a great opportunity to enter. And in fact, I've added more positions in Meta recently and I'm in this game for the long run. But once again, this is not a buying or selling recommendation. Make sure you do your due diligence before making any form of investment decisions. Apart from Facebook, I also added more positions into Microsoft. And if you're wondering why am I so bullish on Microsoft then do check out the video right here as I explain to you my thought process behind that. In fact, apart from buying stocks I also use options to accelerate my return on Microsoft and you can see that my position has actually went up more than 20% despite of the recent volatility. So for those who want to learn about options to accelerate your return in this new year then make sure to join us in our upcoming webinar where we share with you step by step exactly how can we use options to generate consistent return regardless of the market condition. This two hour introductory workshop is completely free and you can register your seat via the link below. For those who are very serious in learning options step by step at the end of our webinar we will also be sharing with you additional resources including our three-day flagship program which is called Options Millionaire Intensive. So you decide to join us and take your investing to the next level then do use my coupon code ChloeLin over here so that you can get additional $50 off when you sign up for our course. That's it. If you find today's video helpful remember to give it a thumbs up as well as share it to your friends so that more people can be inspired to start investing safely. Also remember to join my telegram channel over here so that you can stay up to date of my latest investment insights. With that, happy investing and I will see you next week. Mada, likes you. Bye bye. In the earnings call Mark Zuckerberg and In the earnings call Mark Zuckerberg and Mark Zuckerberg mentioned that and early thumbs up is also appreciated because it will help to tell YouTube algorithm that you find this video helpful and it will help you and it will actually and it will actually help to push out to more people so that to inspire them to start investing safely.