Meta Platforms Crashes On Earnings: What's Next For Facebook's Stock?

Meta Platforms Inc. FB shares are trading significantly lower Thursday after the company reported worse-than-expected fourth-quarter EPS results and issued guidance.

Meta Platforms reported quarterly earnings of $3.67 per share, missing the analyst consensus estimate of $3.84. The company also reported quarterly sales of $33.67 billion, beating the analyst consensus estimate of $33.38 billion by 0.87%. 

Meta was down 25.4% at $240.96 midday Thursday. 

See Also: Meta Platforms (Facebook) Q4 Earnings Takeaways: Big EPS Miss, Revenue Beat, New Ticker

Meta Daily Chart Analysis

• Shares saw a large gap down after the earnings call, falling well below the higher low trendline. The stock was trading in an ascending triangle pattern before the drop and showed resistance near the $380 level. New areas of support and resistance may start forming now that the stock is sitting in new territory.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) fell much lower Thursday down to 26 and saw many more sellers enter the market. The stock now trades with an oversold RSI and is showing the market is seeing many more sellers. Price may continue to fall if the RSI stays in the oversold region.

What’s Next For Meta?

Shares took a steep fall following the earnings call, which put bears in control of the stock. The stock sits in a period of uncertainty where it may begin to bounce back or falls further. Price movement may get easier to predict after the stock forms more support and resistance.

Bullish traders are looking to see the stock begin to form higher lows and for the RSI to push back above 50. Bearish traders are looking to see the RSI stay low and for the stock to continue to see downward movement.

CEO Mark Zuckerberg. Photo courtesy of Meta.