- Summary:
- What is the outlook of the Meta stock price? We explain why FB shares are yet to recover in the near term as it consolidates.
The Meta stock price has moved sideways in the past few days as investors focus on the company’s future. FB share price is trading at $194, which is 14% above the lowest level this year. The company’s market cap has tumbled to more than $516 billion. The shares have dropped by 50% from its all-time high, bringing Mark Zuckerberg’s net worth to over $53 billion.
Meta Platforms is going through significant changes as the company faces significant challenges. For example, apple’s iOS updates have made it almost impossible for advertisers to target their key demographics. Similarly, the company is facing competition from upstarts like TikTok, that are now dominating the social media industry. Similarly, Amazon has become a leading player in the advertising industry.
Most importantly, Meta Platform’s key products are getting old. The number of young people actively using Facebook has been on an overall downward trend. Once seen as the company’s future, Instagram is also losing key demographics. Most young people prefer TikTok’s randomness compared to Instagram’s curated feeds.
Further, Meta Platforms lost Sheryl Sandberg, its senior executive, after Mark. Her departure happened after she differed from Mark’s vision of the metaverse. Therefore, with ad revenue stalling and with the metaverse dream not yet around, there is a likelihood that FB will continue struggling in the coming months.
Still, Meta Platforms is a solid value company. It has minimal debt while its annual profit has risen to more than $40 billion. In addition, the company still has a strong market share in the ad business despite slowing down. As such, Meta is transitioning from a growth company to a value stock.
Meta stock price forecast
The daily chart shows that the FB stock price has been in a strong, tight range in the past few days. The shares have formed a symmetrical triangle pattern. This pattern is nearing its confluence level. At the same time, the shares remain below the 25-day and 50-day moving average.
It has also moved slightly above the key support at $185.50, while the MACD has moved below the neutral level. Therefore, there is a likelihood that the Meta Platforms stock price will soon have a bearish breakout as sellers target the key support at $170. The stop-loss of this trade is $205.
