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Lack of Prospects for the Growth of the Meta Platforms Shares

11/23/2022 3:07 PM

The stocks of Meta Platforms Inc., which owns the largest social network Facebook Inc., continue to trade in a downtrend and are around the 111.00 mark.

Against the background of a global wave of layoffs in the US technology sector, the head of the company, Mark Zuckerberg, spoke about plans for a massive reduction that will affect 11.0K employees, which will amount to 13.0% of the total number of employees. In addition, the company also extended the moratorium on recruitment of new personnel until Q1 of next year. Leading analysts do not expect positive dynamics for Meta Platforms Inc. stocks, in particular, Morgan Stanley financial holding adjusted the forecasted price to 100.0 dollars per share from 105.0 dollars earlier. In addition, experts see a problem in the declining online advertising market, which in 2023 may face problems due to high uncertainty.

Assessing the financial condition of Meta Platforms Inc., it is worth noting that in the last quarter, revenue amounted to only 27.71B dollars, which is a very low result against the background of 28.82B dollars in Q2, which reflected a loss due to the company's withdrawal from the Russian market. Earnings per share reached 1.64 dollars, and this is the worst indicator since 2019. Thus, there are still no prospects for serious growth in stocks.

On the daily chart, the price continues to trade in a global downtrend, moving away from the lows of the year at 88.00.

Technical indicators, despite the slowdown, still hold a sell signal: the fast EMAs of the alligator indicator are below the signal line, and the histogram of the AO oscillator, being in the sales zone, again forms new descending bars. 

Support levels: 102.70, 88.30. | Resistance levels: 123.50, 154.00.

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