Yes, it is possible to make the case that:
the Facebook (Meta-what?) is at the early stages of the structural decline
We all know that they are losing market share to TikTok, Snap, Telegram, etc.
Then why wouldn’t its stock find its bottom at 16x P/E?
Well, cause their margins are so damn high!
Their EBITDA margins run close to 45% and that is unsustainable.
If their margins decline to say 22%, then after taxes and other items, their P/E could be as high as 50x…

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