If you buy into META at $97, what will you do if the stock goes to $50 based on worsening continuations of current trends? If ad demand dampens, if ad rates decline, if metaverse spending continues to ramp up, how will you feel? If you will love the stock at $50 and buy even more, and the thought of seeing your initial investment cut in half doesn't make you want to throw up and cut your losses, you have your answer.
I bought into META at just over $200 per share. Although I assumed a 50% decline was hypothetically “possible,” I didn't believe I would have to confront this question.
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