Meta Stock Price Uptrend on Halt; Dropped Over 10% Since Earnings

• 1 Meta Platforms (NASDAQ: META) posted quarterly earnings on July 26, 2023. 
• 2 The stock price was in an uptrend, but it witnessed a trend reversal following the earnings release. 
• 3 Meta stock price rose up to 130% since the start of the year. 

Tech giant Meta Platforms (NASDAQ: META) turned the tables this year after suffering for almost a year. Meta stock price dropped up to 65% from the start of 2022 to the end of the year. However, the winds changed for the technology company this year as the stock price rose more than 125% to date. The shift towards artificial intelligence (AI) also has to do with the company’s profitability. 

Meta reported quarterly earnings in the latter part of July marking a growth in revenue and income on a quarterly as well as yearly basis. It posted $32 Billion in revenue beating last year’s revenue of $28 Billion by 14%. The net income remained at $7.8 Billion, over 16% more than the previous year’s $6.7 Billion. 

The free cash flow margins saw a rise as it increased over 30% for the quarter while Meta expects them to see 20% growth for the upcoming quarter. 

In November last year, OpenAI took the market by storm after launching its generative AI chatbot, ChatGPT. Seeking similar growth, tech giants like Google and Microsoft moved ahead in the sector and Meta did not waste time as well. 

The company released its first large language model dubbed LLaMa 2 in July this year. The language model is free for people who intend to build commercial products. 

META Stock Price Movement

Though Meta stock price was maintained above the moving averages since the golden crossover in March 2023, it dropped below the 50-day EMA at $292. Currently, the 200-day EMA stands at $234. 

Prior to the 10% drop since the earnings release, Meta stock price rose over 150% year-to-date. The continued drop in price could make the price retest the immediate support at $260. 

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