META (Update) – Stock Plunges Below $100 – Is The Metaverse Turning A Black Hole For Investors? | new

  • Meta Platforms Inc – WKN: A1JWVX – ISIN: US30303M1027 – Price: $98,555 (Nasdaq)

Meta Platforms’ third-quarter earnings per share of $1.64 missed analyst estimates of $1.93. Revenue of $27.71 billion beat expectations of $27.57 billion Source: stock3

Update from 3:40 p.m.: The stock falls even further than yesterday’s aftermarket and opened already under 100.00 USD. This extends the minus to over 23% from yesterday’s closing price. The potential rally opportunity depicted below in the range from $102.00 to $104.11 was therefore likely missed. The next level of short-term support is just at $91.00. Below that, there might even be a fee of up to $84.00. On the other hand, there would be only minimal chances of stabilization if the long-term retracement of 76.4%, which is currently trading at USD 104.11, is found again.

Meta Platforms Chart Analysis Update (Daily Chart)

The parent company of Facebook, WhatsApp and Instagram, like Alphabet, the parent company of Google, faces headwinds lower ad spend fully felt and earns $4.4 billion, which is only about half that of the same quarter a year earlier. Revenue is now down for the second consecutive quarter, and the decline has accelerated, down 4% year-over-year Sales stagnated at $27.71 billion slightly above expectations of $27.44 billion. However, it can be said that the year 2021 as a whole was characterized by a significant increase in sales and profits, which puts the current decline into perspective. But also expensive new business areas like the gigantic project metaverse clearly went too far for investors.

After a brief rise to $140.00, it imploded to around $104.00 in the aftermarket

Interestingly, looking at yesterday’s after-hours price implosion, the share on the release of the numbers initially rise to USD 140.00 for a few minutes in the secondary market could, before the blow of steam from the next wave of selling knocked the price down to near $100.00. So the share a at the top yesterday even lost 25%. It is possible that some large investors bet on a better result and then also were disappointed.

Meta chart analysis (monthly chart since 2012)

Meta chart analysis (monthly chart since 2012)

The scale of the crisis, which is also evident in regular trading today, can be seen in the all-time monthly chart: from the all-time low of $17.55 shortly after the IPO in 2012 , the stock only saw the north direction and peaked at $384.33. Including yesterday’s low (marked in purple on the chart), we are over 70% of that high.

The supports at $137.10 and $123.02 have been pulverized and the long-term uptrend was abandoned months ago. The sell-off reaches the 76.40% retracement of the entire bull market since the IPO. the the next long-term support below $104.11 is therefore only at $72.59, at a major peak from 2014 The range around $100.00-$104.11 is currently the last long-term chance for a bottom formation.

Of course, things don’t look any better in the short term, even if around $102.00 a short-term downside target in the market that could temporarily halt the downtrend. But already under 100.00 USD it could Dive to $91.00 and below $84.00 to be continued. In the table below is the yesterday’s secondary market close at $104.30 marked purple again.

On the other hand, we can only speak of an end to the wave of selling or a sustained recovery when prices break above 138.35 and yesterday’s high after the close of around 140.00 USD.

Chart Analysis of Meta Platforms (Daily Chart)

Chart Analysis of Meta Platforms (Daily Chart)

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(© GodmodeTrader 2022 – Author: Thomas May, expert in Fibonacci analysis)

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