Shares of Meta Platforms, Inc. (NASDAQ:META) are falling Thursday after the company released its third-quarter earnings.
- META is encountering selling pressure. Review the technical setup here.
What To Know: Meta reported diluted earnings per share of $1.05, which includes a one-time, non-cash income tax charge of $15.93 billion and may not compare to estimates of $6.68. On an adjusted basis, earnings per share came in at $7.25, according to Benzinga Pro. The company reported third-quarter revenue of $51.24 billion, beating estimates of $49.39 billion.
Meta shares were trading down around 10% following the report, according to Benzinga Pro.
The weakness in shares appears to be partly due to a surge in spending. Meta said it expects capital expenditures for 2025 to be between $70 billion and $72 billion, versus prior guidance of $66 billion to $72 billion.
The company also noted that it continues to monitor “increasing headwinds” in the EU and the U.S. that could “significantly impact” its business and financial results.
“For example, in the EU, we continue to engage constructively with the European Commission on our Less Personalized Ads offering. However, we cannot rule out the Commission imposing further changes to that offering that could have a significant negative impact on our European revenue, as early as this quarter. In the U.S., a number of youth-related trials are scheduled for 2026, and may ultimately result in a material loss,” the company said.
Analyst Changes: Following the company's quarterly results, several analysts cut price targets, which appears to be adding to the weakness on Thursday.
- RBC Capital analyst Brad Erickson maintained an Outperform and lowered the price target from $840 to $810.
- Wells Fargo analyst Ken Gawrelski maintained an Overweight and lowered the price target from $837 to $802.
- Raymond James analyst Josh Beck maintained a Strong Buy and lowered the price target from $900 to $825.
- Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight rating and lowered the price target from $920 to $830.
META Analysis: Meta is currently trading approximately 10.7% below its 50-day moving average of $742.04, which suggests a bearish short-term trend. The stock is also trading below its 200-day moving average of $678.02, further emphasizing the recent downward pressure. The Relative Strength Index (RSI) sits at 59.17, signaling a neutral stance, which could indicate that the stock is neither overbought nor oversold at this moment.
With the absence of calculated support levels, the 50-day moving average will serve as a critical support point. If the stock fails to hold above this level, it could open the door for further declines. On the upside, resistance is identified at $731.00, which may act as a barrier for any potential recovery attempts in the near term.
META Price Action: Meta shares were down 10.24% at $674.84 at the time of publication on Thursday, according to Benzinga Pro. The stock is trading within its 52-week range of $479.80 to $796.25.
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