Meta Platforms Stock Forecast: Snap earnings weigh heavily on META

Facebook revamps app to look more like TikTok.
META stock slides 5.3% to $173.32 in Friday's premarket.
Snap stock lost 32% after reporting earnings that missed the mark.

Clay Webster FXStreet

Meta Platforms (META) stock is off 5.3% in early trading on Friday after competitor Snap (SNAP) served up Q2 earnings that disastrously missed the mark on Thursday night. Snap stock slid 32% in the premarket a day after announcing post-session results that missed on both GAAP earnings and revenue and were bad enough that management chose not to offer guidance for the third quarter.

The market is now wondering if Snap's troubles with social media advertising will also gravitate to the biggest player in the space – Meta Platforms. The owner of Facebook and Instagram reports earnings on July 27, and it appears that the market will head into earnings with lower expectations from the social media giant.

This is all too bad since Thursday was the day when Facebook announced a new user interface that critics think will be more attractive to younger users. The new feed design will be more like TikTok in that it will more easily show users popular content from users they do not already follow. The previous earnings call this spring had Facebook losing active users for the first time ever.

Facebook stock forecast

Afterhours on Thursday META stock already fell briefly through the $172.40 level that acted as resistance in early July. The 100-unit moving average on the 4-hour chart at $166 is a much better bet for support. Longer-term support sits at $158, which worked back during the March 2020 covid sell-off. Either way, expect this stock to feature strong volatility going into earnings on July 27.

META 4-hour chart

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

EUR/USD climbs above 1.1600 on US–Iran peace breakthrough

The EUR/USD pair stays firm above 1.1600 in the European session on Monday. The US and Iran have reached a deal to reopen the Strait of Hormuz on Sunday, which underpins risk sentiment, supporting the Euro against the US Dollar. Now, the main focus this week remains on the Fed policy decision due on Wednesday.

GBP/USD: US-Iran reaches deal supporting advance beyond 20-day EMA

The GBP/USD pair trades 0.35% higher to near 1.3460 during the late Asian trading session. The Cable extends its week-long advance as market sentiment improves further, following the announcement that the United States and Iran have reached a deal.

Gold gains momentum as US, Iran announce a peace deal

Gold price rises to a weekly high during the early European trading hours on Monday. The precious metal rebounds after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

President Trump announced that the deal with Iran is complete

President Trump announced that the deal with Iran is complete and he authorises the toll-free opening of the Strait of Hormuz and removal of the US Naval blockade. While the agreement is made, it is expected to be signed on Friday to take effect. The Forex market looks stable and could react slowly to the positivity around the news as Iran still expresses its mistrust on the US.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.