How well can FB stock bounce back from a dip?
- Shares of Meta Platforms fell below the $200 level on Monday.
- FB shares have continued to fall since the earnings call in early February.
- Meta Platforms is being sued for failing to warn investors about Apple’s privacy upgrade.
Meta Platforms (FB), owner of Facebook, Whatsapp and Instagram, rose 1.5% to $190.29 on Tuesday. FB stock has managed to keep its head above water despite market weakness attributed to soaring oil prices which is a by-product of sanctions and the US ban on oil imports Russian. Shares closed down 6.3% on Monday at $187.47, breaking the psychologically important $200 level the stock had mostly been respecting since the fourth quarter earnings call in early February, when the stock fell. 26% in a single session. The social media giant is down 43% this year and 50% since its all-time high of $384.33 in August 2021. FB shares are up 2.3% in Friday premarket at $194.59.
Meta Platforms Stock News: A lawsuit related to Apple’s privacy change is coming
In federal court in San Francisco on Tuesday, the Plumbers & Steamfitters Local 60 Pension Trust filed a class action lawsuit against Meta, claiming it failed to warn shareholders about the threat of Apple’s privacy changes to the new iOS. The changes have hurt Facebook’s advertising model, which relies on user data and could cost the social media leader to miss up to $10 billion in advertising this year.
“Instead of being transparent with investors, the defendants painted a false and misleading picture of the mitigation efforts put in place by Meta to counter the iOS changes and rebuild Meta’s advertising business model,” the lawsuit states. .
More drama continues between Meta and Russia as Instagram has begun attaching warning labels to Russian state media posts on its platform. This is sure to get Russia reacting a week after cutting off access to Facebook on March 4. Roskomnadzor, Russia’s media regulator, said Facebook did not respond to its messages after Mark Zuckerberg‘s company restricted the accounts of TV channel Zvezda. , RIA Novosti and the Lenta.ru and Gazeta.ru websites.
On Tuesday, Piper Sandler cut her price target on Meta Platforms stock to $240 from $301, but kept her “outperform” rating on the stock. The company said the poor performance could continue into August. Analysts have been short-term negative on FB since the fourth quarter earnings call a month ago. Wedbush’s Dan Ives said it would be difficult to get back on the growth path. Evercore ISI’s Mark Mahaney said in early February, “Stocks are likely dead money at this level of growth for at least the next three months.”
FB Key Stats
|Market capitalization||$544 billion|
|Enterprise value||$511 billion|
|52 week high||$384.33|
|52 week low||$187.28|
|Average Wall Street Rating and Price Target||Buy, $331.09|
Meta Platform Forecast: FB Stock Returns to $200 or $173
FB stock already broke above the psychological level of $200 on February 24, the day Russia invaded Ukraine. This price drop was discounted, however, as Meta stock rebounded in the same session to rally above $200. Other sessions have seen closes near $198 over the past two weeks, but Monday’s drop to $187 was the moment of truth. It now appears that the stock has found no bottom but is still looking for some type of support.
Three possible support levels appear on the weekly chart. They are $173, $160, and $137. The $173 mark gains followers by acting as occasional support in June 2019 and August 2018. Prior to that, it was resistance in the summer of 2017. $160 served as support from January to March 2019 and then again in June of the same year. $137 was the low range at the start of the COVID-19 pandemic. The Meta Platforms stock must first regain the $200 level to be considered neutral. It will only gain bullish momentum when it breaks back above $245.
1 Week FB Chart