Meta’s Stock Drops Below 200-Day Average, $200 Down From Highs

Meta Platforms' stock price (NASDAQ: META) fell sharply as tariff news broke, down 8.96% on a day that was the worst for markets in 5 years. The company fell to $531.62 at close, more than $200 below the recent high ($740.89) set less than two months ago.

With the year having started so brightly, the shift in sentiment mirrors that of the broader market, with the pullback impacting tech and the Mag 7 names more than most, as markets move risk off. Down 16.9% over the last month, and 10% over 6 months leaves holders looking at this $530 level as potential support.

Looking at the 1 year chart on daily candles above, and you can see the level acted previously as resistance back towards the middle of last year, before eventually giving way to bullish pressure on the third time of asking.

The stock had been testing a crucial long-term technical level: its 200-day moving average (blue, below), located around $577, only for the weight of the news, and the extremity of tariffs to plunge the market into shock. This long-term average is frequently viewed by market technicians and institutional investors as a significant line of potential support.

Having traded between the 50 day SMA (red), and 200 SMA for the best part of a month, the pause for breath that markets had been taking leading into tariff announcements was evident.

This recent weakness in the stock contrasts sharply with Meta's performance reported for the fourth quarter of 2024 back in late January. The company delivered a resounding earnings beat, posting $8.02 in earnings per share (EPS), dramatically outpacing consensus estimates that hovered around $6.75. Revenue also impressed, climbing 21% year-over-year to $48.4 billion, underpinned by robust advertising demand and sustained user engagement across its ecosystem.

Meta highlighted significant traction in its newer initiatives, with Meta AI attracting over 700 million monthly active users and Threads surpassing 320 million monthly actives. The core Family of Apps also continued its expansion, exceeding 3.3 billion daily active people globally. This strong fundamental backdrop, coupled with a respectable 12-month total return still hovering around 18-20%, underscores the company's underlying operational strength.

With the next major set of financial results due April 23rd, price could be driven by sentiment in the short term. Estimates for the print project EPS between $5.19 and $5.33 on revenue ranging from $39.5 billion to $41.8 billion. Delivering results that meet or exceed these ambitious targets will be critical for Meta to reassure investors that its growth engine remains robust, particularly amid lingering macroeconomic uncertainties that could potentially impact advertising spend.

Markets are thus left evaluating a complex scenario: a tech giant with proven fundamental strength and impressive recent earnings, now facing significant short-term technical, and market pressure. With high expectations baked into the upcoming earnings report and nascent worries about cost control, the next few weeks promise to be a crucial period for Meta's stock.