Meta Stock Action + Cloudflare Reveals the Future

Meta has been up for 20 straight days — a bizarre occurrence in the market. Never before has an S&P 500 stock been without a pull back day for this length of time.

$META from 1/17 to 2/14

When something without historical precedent happens, it becomes difficult to analyze what this could mean for the future. A rational inclination views this as positive for holders of the stock, but one could also make the argument that the stock is primed for a massive selloff when a piece of bad news does finally occur. What we can conclusively say from observing the daily behavior (when the stock was down in morning or midday, dips were bought and it always ended the day green), is that there is strong forward momentum — investors want to hold this stock and see any time where it is down as an opportunity to buy.

Credit to @mikeharrisNY on X.com

From a long-term perspective, I think this 20-day streak is not terribly relevant. It is a good sign for META 0.00%↑ in 2025, and I still view the company as the best choice among the Magnificent 7 for the year as I wrote in early January. Analyzing the above stocks which also had similar behavior is a mixed bag in terms of performance, and none of them turned out to become among the most valuable companies in the world. I hesitate to recommend buying today at $736.67, but I also have no plan to sell at this price — this implies that if you want to be in the stock for the long-term as I am, even buying at today’s elevated price will likely turn out to be a good decision if I am correct.

Cloudflare Earnings:
I’ve long been a fan of Cloudflare (NET 0.00%↑), especially its CEO and founder Matthew Prince — he appears to me to be one of the few sincere tech leaders who is building a business that adds real value to the ecosystem. This faith in Prince and Co was renewed on February 6 when Cloudflare earnings were announced and the stock rose ~7% on the numbers, but was up ~18% post earnings call — the call was a masterclass and deserves to be studied for anyone who cares about or is interested in the future of tech. The stock is up 52% YTD and is my second largest position behind META 0.00%↑.