Tech rout widens as Meta sinks after results
A carnage in U.S. technology stocks widened on Thursday as shares of Meta Platforms Inc sank 20% after the Facebook (NASDAQ:META) parent’s costly metaverse bets and the impact of soaring inflation on ad spending spooked investors.
Meta was set to lose about $67 billion in market value, if losses hold through the session, adding to the trillions of dollars that some of the biggest tech names have shed this year amid rising interest rates and a stronger dollar.
Meta itself has lost over half a trillion dollars in market value this year. Its shares were trading at $104.60 before the bell and set to open at their lowest in over six years.
Its results come a day after Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Snap (NYSE:SNAP) posted dismal numbers, sparking a wide-spread selloff in tech stocks.
Analysts say the firm’s spending towards capital-intensive projects at a time when the ad market – its major source of revenue – is drying up worried investors.
Meta expects to spend about $10 billion a year towards metaverse hardware and software, with Chief Executive Mark Zuckerberg saying on Wednesday he expects those investments to take about a decade to bear fruit.
FACEBOOK Technical Analysis: Daily Chart
In the daily charts, FACEBOOK is trading in down channel. FACEBOOK is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 126.17 & the resistance level is at 131.21.
FACEBOOK will trade in down channel until there is trend reversal.
How to Trade FACEBOOK this Week:
FACEBOOK will follow the down channel until there is trend reversal. So, remain bearish on FACEBOOK
