Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Meta fall or mega opportunity?
Last week shares in Meta Platforms (the former Facebook) slumped by 26%, erasing some US$251 billion ($353 billion) in value, marking it as the biggest single-day wipe-out in history. It also dragged down shares in Snap, Pinterest and Twitter. So, what happened?
Some are putting it down to a dreadful earnings result from Meta, which was well below expectations, and stiff competition that Meta now faces from rivals. Some are even saying, “Facebook: The Beginning of the End?” A raft of Wall Street analysts has slashed price targets on the back of this result.
Head of Distribution at ETF Securities, Kanish Chugh, commented on the “Meta fall,” saying “The record-breaking fall overnight in the value of Meta, owner of Facebook, Instagram and other apps, could present a buying opportunity for investors who believe in the stock.”
In doing so, Chugh has gone against the herd. He says, “it’s worth observing that Facebook has a history of successfully pivoting when faced with a major competitor, and has done this well via acquisitions. The acquisition of Instagram is a prime example, as it now contributes more than a quarter of Facebook’s ad revenue.
“The recent development of Instagram Reels in a response to Tiktok is one that is yet to be effectively monetised, but one that arguably has significant upside potential. Australian investors who would like to ‘buy the dip’ can gain exposure to Meta through the ETF Securities FANG-focused ETF known as FANG (ASX: FANG). The ETF tracks the performance of the NYSE®FANG+â„¢ Index by investing in the shares that make up the index in proportion to their index weights,” says Chugh.
This index squarely focuses on high-growth technology or advanced technology-driven companies trading in the US. To give an example of such stocks, we’re talking about Alphabet, Apple and Tesla, while Microsoft came into the portfolio at the last rebalance, at the end of December 2021.
