Meta stock price is showing strength as most US equities keep tumbling. On Wednesday, the stock of Facebook’s parent company turned green for the second consecutive day of the week. Till press time, NASDAQ: META has gained 0.95% after experiencing a slight pullback from the day high of $177.85.
S&P 500 index tumbled once again for the 7th day in a row. The benchmark US index is trading 0.3% lower from its yesterday’s closing price. Nasdaq 100 Index also showed negative price action in the opening hours as it slid by 0.52%.
Meta stock price is currently trading 54% lower than its September 2021 all-time high of $385. Although most tech stocks have shown a similar downtrend, NASDAQ: META has still underperformed. There are multiple fundamental and macroeconomic reasons behind the downtrend.
A major concern for the investors has been the company’s focus on the metaverse development. Many analysts think that the Meta Platforms’ bet on virtual reality hasn’t worked very well. This was also evident from Meta Facebook’s quarterly financial reports, which showed too much spending on metaverse.
Consequently, the company had to lay off 11000 employees in November 2022. Recently, Meta has been planning a massive structuring to flatten the layers in its management. The process may result in a farewell for thousands of more employees of the tech giant.
US stock has faced an intense correction in the past 14 months. The quantitative tightening efforts of the Federal Reserve have dried up liquidity from the markets. Nevertheless, the market has shown a significant recovery since the start of 2023. Meta stock price has also gained 43% since the start of the year and went as high as 54%.
The price has also broken above the 200-day moving average, which is a bullish sign. However, it has still failed to gain strength above the key level of $186. If the price reclaims this level in the coming weeks, then Meta stock price prediction can flip very bullish. This won’t be an easy task for the bulls as the next month’s FOMC meeting is expected to raise interest rates significantly.
This post was last modified on %s = human-readable time difference 16:59