Meta falls below 100 hour MA for first time since early Jan.
In a CNBC interview this morning, former President Trump dubbed Meta “the enemy of the people,” setting off a negative shift in the stock’s performance. This comment has revealed a significant weakness in what had previously been a bullish trend for Meta, as the stock’s price dynamics have taken a downturn. Specifically, Meta’s stock has breached its 100-hour moving average of $489.72 for the first time since early January, when the moving average hovered around $348. This break below the moving average is notable, given the stock had rallied 53.31% since the low in January.
Currently, Meta shares are down $23.27, translating to a 4.61% decrease, positioning the stock at $482.62. This drop is poised to be its largest single-day decline since December 2022. The descent comes despite the positive momentum generated by Meta’s last earnings report released on February 1, which showed an EPS of $5.33 on revenues of $40.11 billion. These figures represented a significant improvement from the previous year’s EPS of $1.76 on revenues of $32.16 billion, marking a 202% increase in EPS on a 24.7% increase in revenue.
Looking forward, Meta’s stock is approaching another critical technical level, its 200-hour moving average of $471.53. The stock has not traded below this average since December 12, 2023, suggesting a pivotal moment for its short-term market direction.