Risks remain on the downside for Meta stock
The stock is also under pressure for the same macro reasons as the wider equity market, namely the global economic slowdown, which is putting pressure on investors’ growth prospects, and by the tightening of monetary policies, which is driving up costs. of financing.
Both on a macroeconomic and microeconomic level, there is therefore no real reason to be optimistic about the title in the short or medium term. The positive point to note is that the company is becoming relatively inexpensive compared to its history. The “P/E” ratio fell from 24 at the start of the year to 14 and the “enterprise value/EBITDA” ratio fell to 10 against an average of 22 over the past ten years.
Technically, a pullback below the support at $155 would pave the way for new yearly lows. The Covid low at $137 and the December 2018 low at $123 would be the next major supports to watch. The outlook would turn technically bullish again in the event of a bounce above the recent high at $185.