One of the best ways to make money is by trading fear – just like famed investors have done.
In fact, we’re seeing plenty of that in the tech sector these days, which is creating impressive opportunities. Sir John Templeton taught us to buy excessive pessimism.
Warren Buffett says that a “climate of fear is your friend when investing; a euphoric world is your enemy.” Even Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.”
Meta Platforms (FB) is the perfect example.
For one, fear was out of control with Meta Platforms.
All after weak earnings, and a miss on forecasts – most of which appears to be priced in.
- Earnings per share: $3.67 vs $3.84 expected
- Revenue: $33.67 billion vs $33.4 billion expected
- Daily Active Users (DAUs): 1.93 billion vs 1.95 billion expected by analysts
- Monthly Active Users (MAUs): 2.91 billion vs 2.95 billion expected by analysts
- Average Revenue per User (ARPU): $11.57 vs $11.38 expected by analysts
Two, Meta Platforms became technically oversold on RSI, MACD, and Williams’ %R. In fact, the last time this stock became this oversold using those indicators, FB rocketed from a low of about $140 to $385 more than a year later.
Three, after an onslaught of downgrades, analysts at Tigress Financial reiterated a strong buy rating on the stock, with a price target of $466 a share. The analyst says that similar warnings of revenue growth slowdowns from FB also proved to be buy opportunities, as well.