Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Thursday, February 8, 2024

Meta Announces Dividend. Meta's Stock Price Jumps. Bitcoin Valuation

Meta Platforms Inc, Facebook's owner recently announced a first dividend payment and a stock buyback program and Meta's stock jumped by more than 20 % in one day the 2nd of February.

Meta, Facebook, Instagram and WhatsApp's owner can now be valued using classical discounted cash flows models by discounting future terminal value and discounted cash flows constituting dividend payments. Which proves Meta could have been valued using discounted cash flows models throughout all its history. Its just that the time horizon was quite long, 20 years to be exact.

Many investors, investing gurus and Wall Street research analysts claim Bitcoin cannot be valued, does not have intrinsic value, because it has not distributed dividends. Bitcoin exists for 11 years now, much shorter time span than the 20 years that was required for Meta, Facebook's owner to start paying dividends since its founding in 2006.

So Bitcoin can be safely valued using discounted cash flow using terminal value. That is sell price minus purchase price, discounted via the risk free rate + risk premium, compounded by growth to the present.

So Bitcoin does have intrinsic value, according to Wolfteam Ltd.'s view.

Facebook is 32 % overvalued, according to Wolfteam Ltd.'s projections and estimate based on the discounted cash flows methodology's insights.

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