Leading social media stock, Meta Platforms Inc (FB), is getting clobbered this morning after reporting earnings. Meta Platforms Inc (FB) stock is trading down by 25.0% to $240.80 a share. The stock is falling to its lowest level since July 2020. Many major Wall Street firms have already downgraded the stock today, putting more pressure on the share price. Traders and investors should note that the stock has now fallen sharply below its 100-week moving average. This is a big negative for the stock and a good indication of lower share prices ahead.
Meta Platforms Inc (FB) will have some decent support levels coming into play soon, but overall when a stock declines like this it will usually need to flush out much more in order to find a true bottom. The stock should have some short term support around the $231.00 level as this is a major retrace level. In my opinion, once this level breaks or fails to hold that support area the stock should drop into the $200.00 level. That is where the stock really looks attractive on the chart. This $200.00 area is also a major retrace level and a spot where stock broke out in May 2020. In this case, it is always better to go with the more conservative support level. When Meta Platforms Inc (FB) trades down to the $200.00 area I will look to be a buyer of this former market darling.
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