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Trader's Diary

Economic calendar

May
2025
Definition of terms:
Earnings
IPOs
Splits
Week 21

Changes in Meta Platforms Company

Date: 28.8.2024

Speaking as a trader and investor who follows the technology sector closely, I've been focusing today on the recent announcement by Meta Platforms Inc. to close their augmented reality studio, Meta Spark. This decision represents a significant strategic departure and offers exciting new investment prospects.

Background and implications of the decision

Meta Spark was founded to compete with Snapchat in the area of digital filters for videos. These filters have become extremely popular and therefore the studio was initially seen as a strategic asset to the Facebook, Instagram and Messenger platforms. However, Meta has decided to close the studio as of January 14, 2025, and focus its resources and investment on other areas.

Loss history and new direction

By January of this year, the company had recorded a loss of approximately $50 billion on augmented and virtual reality products. Their efforts to sell virtual and augmented reality devices, including headsets, proved problematic. This historical backdrop underscores the risks associated with big technology bets that fail to deliver the expected results.

The transition to artificial intelligence

Meta's recent focus has been primarily on artificial intelligence. CEO Mark Zuckerberg has stated that AI will be the company's biggest investment area this year. It plans to spend up to $40 billion on infrastructure to support the technology, including hardware, data centers and servers. This shift is particularly important because it indicates where the company sees its long-term growth and innovation.

Investment strategy

As an investor, I recognize that strategic changes in a company like Meta can bring both opportunities and risks. The closure of Meta Spark reveals the need for the company to redefine its core business priorities and focus on future technologies that have the potential to deliver higher returns. Investing in Meta today requires a careful assessment of the potential of AI and its ability to transform the technology space.

Conclusion

Today's decisions and announcements by Meta Platforms Inc. are causing me to re-evaluate my investment position in the company. The central role of AI in the company's strategy, coupled with the high financial commitment to support this technology, represents a pivotal moment for future growth and innovation. Despite the risks of current strategies, Meta appears to have a clear plan and direction that could deliver significant returns for long-term investors like me. [1]

 

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

Date: 26.2.2025
Super Micro Averts the Threat of Delisting and Rises Sharply

After analyzing the quarterly results of Super Micro Computer Inc. (NASDAQ: SMCI), I noticed a sharp increase in the price of their shares. In extended trading, they rose by about 22% after the company filed its late financial statements on time to meet the Nasdaq exchange's requirements to remain in the index. The move removed the threat of delisting that hung over the firm due to financial reporting issues and the loss of an auditor in 2023. At the same time, Super Micro announced that the new BDO auditor confirmed the compliance of the results with GAAP accounting principles, which managed to stabilize the situation. What awaits us next?

Date: 19.2.2025
Intel and Speculation About a Possible Company Split

Today, I noticed that Intel's stock has risen by nearly 50% from its February low, clearly indicating that the price is reacting to ongoing speculation about a potential company split.* Intel has been struggling with the loss of its technological edge and market share, with its performance lagging behind competitors like Nvidia, which dominates the AI chip segment. Ongoing negotiations between TSMC, Broadcom, and the Silver Lake investment group suggest that Intel's leadership is actively exploring ways to regain its market position and restore investor confidence.

Date: 12.2.2025
Alibaba and Apple Forge AI Partnership in China

This morning, I noticed a sharp increase in Alibaba shares – almost 8%1 since last week. The stock thus continues the bullish trend that we last saw in September last year.* I immediately started to find out what was behind it, and I came across an interesting piece of news. Apple is reportedly working with Alibaba to develop AI features for iPhones in China. This news immediately caught my attention, so I started looking for ways to benefit from it.

Date: 5.2.2025
AMD Slips After Earnings Report

For us investors following the semiconductor sector, today was very significant. AMD announced its results for the fourth quarter of 2024, beating expectations in terms of both sales and profit. Nevertheless, the shares fell by more than 9% after the end of regular trading hours.* This decline subsequently raised questions that I also dealt with. Is this an overreaction of the market, or is it a legitimate warning sign?

Date: 29.1.2025
ASML Exceeds Expectations: A Buying Opportunity?

Today's trading day was very interesting for me as I focused on the results of ASML, a leading player in chip manufacturing equipment, which published its results for the fourth quarter. ASML reported orders worth €7.09 billion, well above expectations. This order intake is a significant indicator that the demand for advanced equipment, driven by the growth of the AI field, remains strong.

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