Meta Platforms Stock News and Forecast: META collapses on inflation, South Korea adds to pressure

META stock falls over 9% on Tuesday in a market meltdown.
Nasdaq is down 5%, and S&P 500 is down 4% by comparison.
Meta Platforms underperforms markedly versus main indices.

Ivan Brian FXStreet

Meta Platforms (META) stock fell sharply on Tuesday as the market digested the US CPI print. A higher than expected number led to a sharp sell-off in equities with all the main indices closing sharply lower. However, tech took the biggest brunt of the selling with Apple and Alphabet down 6%, amazon down 7%, and Meta Platforms down a whopping 9%.

Meta Platforms stock news

Why the big divergence from big tech? Usually, these are seen as haven plays. All are supposed to be cash generative. The problem is big tech is generally seen as having the most to lose from higher interest rates. This may be true for some but not all. The higher the growth rate of a stock, then the bigger effect a change in interest rates has on its performance. That is why FAANG was such an outsized performer during the Fed juiced says of monetary stimulus post-pandemic. Higher growth rates get discounted by the prevailing rate of interest. If those interest rates are forecast to rise, then the present value calculation gets reduced.

Adding to tech pressure and especially for the aforementioned companies is the strength of the US dollar. These are global companies, many of whom generate more than half of their revenues in overseas currencies. When that overseas currency depreciates (think euro, yen, GBP, etc.), then all of a sudden those foreign revenues are worth less in dollar terms. This affects revenues and leads to the hilarious lines we see in corporate earnings reports – "in constant currency". When are currencies ever constant?

Adding to the sentiment of Meta stock this morning is news that South Korea has fined it and Alphabet (GOOGL) over violation of privacy laws, according to Reuters.

Meta Platforms stock forecast

META is just on massive support at around $154. Breaking this, the next level is the pandemic low at $137. The double top at $184 keeps a lid on bulls, and only a break there begins to look interesting for the bearish narrative to end.

META stock chart, daily

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD consolidates gains just above 0.7000

AUD/USD rebounds sharply and manages to reclaim the area beyond the 0.7000 threshold on Wednesday. Indeed, the pair sets aside two daily drops in a row and regains balance on the back of the marked pullback in the Greenback as investors keep assessing the results from the US Midterms elections.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold pops to four-day highs near $4,050

Gold manages to regain some composure, leaving behind two consecutive daily pullbacks and reclaiming the area above the key $4,000 mark per troy ounce on Wednesday. The strong decline in the US Dollar, shrinking US Treasury yields across the curve and lower crude oil price all contributes to the yellow metal’s recovery.

Bitcoin and Gold Outlook: BTC tops $80K, XAU reclaims $4,000 as Democrats take control of Congress

Bitcoin (BTC) and Gold (XAU/USD) are gaining momentum on Wednesday, as bulls stage a comeback. BTC’s position above $80,000 signals a bullish turnaround, erasing sharp losses from the Binance hack, which impacted $6.3 billion. Meanwhile, Gold’s recovery above $4,000 could strengthen bullish sentiment after the United States (US) midterm elections.

US midterms 2026: Investor Q&A on the Democratic sweep

1. Gridlock replaces the stimulus narrative. A Democratic Congress would constrain Trump's ability to pursue additional fiscal expansion and legislative tax measures. But it cannot simply reverse the president's entire economic agenda. Executive powers, existing legislation and presidential vetoes remain important. 2. AI faces a higher hurdle, not an extinction event.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.