Market Spotlight: Meta Platforms Reports First Quarterly Sales Decline
Shares in iconic US tech firm Metal Platforms Inc, led by Facebook founder Mark Zuckerberg, are trading lower ahead of the open today. The company was hit this week by a negative set of second quarter earnings which included the first quarterly decline in sales figure for the company. Meta cited loss of advertising revenues as the core issue impacting performance over the last quarter, linking to a weaker US economy which has seen corporates scaling back their budgets.
Looking ahead, the company issued a profit warning for the coming quarter as it expects overall economic activity to weaken further. CEO Zuckerberg said Meta was expecting a “continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.” Zuckerberg also highlighted the company’s plans to scale back staffing levels saying that “This is a period that demands more intensity and I expect us to get more done with fewer resources.”
Technical Views
Meta Platforms
The company’s stock has been trading lower within a large bear channel over the last year. However, recently price has settled into a falling wedge pattern against the channel lows, suggesting risks of a bullish reversal. The 157.01 level has been underpinning price action recently and, with both MACD and RSI turned bullish, there are risks of a correction higher if bulls can get above the 185.11 level.
Meta Issues Fresh Profit Warning
Shares in iconic US tech firm Metal Platforms Inc, led by Facebook founder Mark Zuckerberg, are trading lower ahead of the open today. The company was hit this week by a negative set of second quarter earnings which included the first quarterly decline in sales figure for the company. Meta cited loss of advertising revenues as the core issue impacting performance over the last quarter, linking to a weaker US economy which has seen corporates scaling back their budgets.
Looking ahead, the company issued a profit warning for the coming quarter as it expects overall economic activity to weaken further. CEO Zuckerberg said Meta was expecting a “continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.” Zuckerberg also highlighted the company’s plans to scale back staffing levels saying that “This is a period that demands more intensity and I expect us to get more done with fewer resources.”
Technical Views
Meta Platforms
The company’s stock has been trading lower within a large bear channel over the last year. However, recently price has settled into a falling wedge pattern against the channel lows, suggesting risks of a bullish reversal. The 157.01 level has been underpinning price action recently and, with both MACD and RSI turned bullish, there are risks of a correction higher if bulls can get above the 185.11 level.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.