Metaverse. Since Facebook changed its name Meta platform, some investors like to put a few marbles in it so as not to miss the bandwagon. But wouldn’t this be a common effect of FOMO? And are there still stocks that are good enough to guarantee a good return over the next decade?
At once the ice may break: between big cap Very liquid, no Not even one A technology stock that is currently trading at such a low price that it will guarantee future outperformance relative to the benchmark.
to invest MetaverseOnly great companies whose stock valuations have the relative right to their earnings growth rate, but Nothing is truly transcendent. You have been warned.
Reminder regarding the graph below
The charts below are basic data charts. You know me, I don’t pay for technical analysis. Here is the interpretation of the data in these graphs:
- black line Current stock price.
- blue line Its average price/earnings ratio over the past 20 years.
- Dark green part Growth rate per share.
- Light green part Displays the dividend declared.
- Composite P/E ratio A weighted average of the most recent actual earnings + the nearest quarterly earnings forecast.
Activision Blizzard (ATVI)
Activision Blizzard American tech has suffered the full brunt of recent corrections to return to more acceptable valuation levels in recent weeks
It is now quoted at a diluted P/E 15 For growth rate 28%That’s very respectable compared to its benchmark, the NASDAQ-100, which is still at the top 37.7 Despite its recent decline.
the alphabetAlso known as “Google”, not the cheapest of the companies presented (its mixed P/E 27) but can quickly become indispensable Metaverse.
Despite its slightly higher price, it is also not the most expensive, especially since it has one of the highest revenue growth rates in the industry. 38%.
the amazon Can also play an important role in the environment Metaverse. We certainly know the excellent underlying qualities of the company, but the stock is unfortunately quite expensive (price/earnings ratio 83)
I still include it in this ranking because the growth rate is expected 31% On long-term and growth Operating cash flow Has been for the past few months 28%.
The company uses these to continue to invest heavily in the development of its operations. That’s one reason why Amazon’s net profit doesn’t always look so high at first glance.
Also Read : Tech US: Valuation of 13 stocks: AMD, Amazon, Apple, Nvidia, PayPal, etc
Meta Platform (FB)
Recently, the name of the headquarters of the Facebook company has been changed Meta platform To make an impression on its future involvement in the virtual world, Metaverse.
It certainly bet on the development of reference titles Metaverse. Meta Platform’s stock may seem very expensive at first glance, but with its mixed P/E 22 For a huge growth rate 34%It’s not that much.
Tencent Chinese technology stocks return to a correct valuation after the fall. Thus it posts a mixed P/E 24which, for such high income growth rates (34%) is finally very appropriate.
If you accept the sword of Damocles currently hanging over Chinese stocks, Tencent could be a key player. Metaverse In the central states but also internationally.
You should invest Metaverse?
At this high price level, no, Not necessarily. There are other less fashionable or neglected sectors, viz the oilWhich can arguably get you better returns over the next decade.
It is up to you to make the decision that best suits your investor profile.
Caution: This analysis contains data Not buying advice. Therefore, the author cannot be held responsible for any damage to the product(s) concerned. Any investment involves the risk of loss. For more information, see our legal notice.
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