It's been a very rough year for many stocks, but few have been beaten up as badly as Meta Platforms (META, formerly Facebook).
META hit a 2002 high on January 4th at just above 343. Ten months later, on November 4th, META reached its low at 88.09. That's nearly a 75% haircut in less than a year. Ouch! META's latest miscue came as it reported its Q3 quarterly earnings. After coming up significantly short of its EPS consensus estimate and issuing a Q4 warning, META gapped down, taking out its previous price support of 123.53. Despite its weakness in early November, META staged a rally, reaching a high close of 123.49 last Friday. Unfortunately, that's where its current advance ended:
Enter META Platforms, Inc. (META):
META dropped nearly 7% on Tuesday as internet stocks ($DJUSNS, -3.20%) soured. I don't like META's failure as it attempted to clear PPO centerline resistance. It's also been one of the weakest internet stocks in 2022. It's clearly one of the worst stocks in one of the worst industry groups. Losing rising 20-day EMA support is an obvious negative on the chart, but I believe META's opening price (107.12) the day that the October CPI was released on November 10th will be a very important price level to hold. There's still another potential 6-7% drop before we reach that gap support, but it really needs to hold, should it get there.
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Happy Trading!Tom BowleyChief Market StrategistEarningsBeats.comBetter Timing. Better Trades. |