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

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Meta Stock Price Uptrend on Halt; Dropped Over 10% Since Earnings 
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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 addition to the core businesses including social media platforms and metaverse-like initiatives, Meta is exploring opportunities in the emerging cutting-edge tech of artificial intelligence (AI). 

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

Meta stock is trading at $285 falling over 3% in the last intraday trading session on Thursday, August 17th. The stock price fall followed a three-day decline streak. The continued price drop suggests META might join other tech giant companies facing the corrections in stock prices lately. 

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. 

Meta Stock Price Uptrend on Halt; Dropped Over 10% Since Earnings 
Source: Meta Platforms Inc (NASDAQ: META) Stock Price Movement on TradingView

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. 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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