The market can’t decide on the direction as concerns about the general economy and the headwinds of central bankers in rate hikes continued to drum the sentiments. As a result, major indices swing between losses and gains.
More importantly, we are seeing weakness in Russell 2000 as the latest GDP data shows growth weakening to -1.6% in the first quarter compared to the estimate of -1.5%. This hit small growth stocks that are usually not profitable and depend on local markets.
With more data coming today and tomorrow, Pika World expects more swings around the indices with downward pressure still persistent.
🩺Meta Platforms: In need of a float🔫
The stock had fallen by more than 50% this year as it struggled to help escape from the impact of privacy control by Apple and the competition from TikTok. Investors are also worried about the resources ploughed into the metaverse business unit.
As macroeconomic conditions worsen and recession worry mounting high, investors are also concerned about potential ad spending cuts. As a result, analysts quickly adjust the figure downwards, and the near-term picture thus looks bleak.
While Pika World believes that Meta will still be a beneficiary of a general long-term digital ad spending trend and potential progress in the metaverse, with the economy slowing significant and showing up in the economic data, the more treacherous geopolitical landscape haunts investors to avoid the risk-on move.
Pika World will be cautious in any incremental accumulation as we believe in waiting for more clarity.
😭A lesson learnt, sharing session💸
Pika Nat made a huge, costly mistake on Wednesday. While I intend to close an option for a $5 cost with a profit using the IBKR mobile platform, upon pressing the buy button to close the option, it came as a shock that the cost had jumped to $700+.
I had closed without knowing the jump and incurred a dramatic $700 USD loss on the position. What was a profitable position had turned into a nightmare. However, Pika Nat believes it is here to teach a lesson. It was and is still painful, and thus Pika Nat would like to share this experience so that you do not make the same mistake as me.
Always re-look at the closing price even if you have initially clicked the right price, as in a split second, prices may jump aggressively. In my case, the cost jumped from $5 to $700+ in IBKR mobile, a freak lesson.
I hope this is useful!
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All is well.