Meta stock

Meta shares could face their sharpest daily fall in nine months as investors fret earnings could continue to fall in 2023.

Any further pressure could sink the stock to as low as $92.50, the level of resistance seen in July and August 2015 and marking the 2016-low. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. The first target is the $109 floor that held throughout the second quarter of 2016. Meta is spending billions on the metaverse despite the fact it doesn’t expect to see any return for years to come and that its social media and advertising business is struggling. Meta currently boasts an average target price of $187, but this is likely to decline as brokers adjust their view following the latest update. The Reality Labs division, which homes its metaverse ventures, posted its biggest quarterly operating loss to date in the third quarter of $3.7 billion. We could see some the stock fall toward $101.50, marking the floor seen in the fourth quarter of 2015, before finding some support. More concerning was the fact that EPS plunged by 49% to $1.64 in the quarter and fell far short of the $1.88 pencilled-in by analysts. Meta said it is sharpening its focus on costs by keeping the headcount in some teams flat and downsizing others, with units pursuing its ‘highest priorities’ the only ones set to receive additional human resource. Some steps, like the ongoing rationalization of our office footprint, will lead to incremental costs in the near term. Wall Street had forecast that Facebook’s Daily Active Users (DAUs) would fall 5.5% to 1.86 billion in the third quarter from the 1.97 billion it had in the second. However, that was the second consecutive quarter of lower revenue, which is suffering from a myriad of headwinds, including a 18% year-on-year drop in pricing.