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Here's Where Facebook Stock Could Trade on Earnings

Facebook stock is firing multiple mixed signals after reporting earnings. Here are the key levels to know now.

We have a pretty mixed picture with Facebook  (FB) - Get Meta Platforms Inc. Class A Report on Tuesday, which is now down almost 5% on the day.

That’s after the stock initially rallied in after-hours trading on Monday following its earnings report and after climbing in premarket trading on Tuesday.

However, the word “mixed” is a good description for this stock right now.

Not only are the technicals mixed — more on that in a second — but its report was too. 

The company beat on earnings expectations and despite growing revenue 35.1% year over year, Facebook missed expectations by about $500 million.

On top of that, the entire industry appears mixed too.

Snap  (SNAP) - Get Snap, Inc. Class A Report stock plunged more than 25% last week on worse-than-expected earnings, while Pinterest  (PINS) - Get Pinterest, Inc. Class A Report shares sank following a takeover attempt by PayPal  (PYPL) - Get PayPal Holdings, Inc. Report that didn’t come to fruition.

Further, Facebook’s growth in daily active users beat expectations, while its growth in monthly active users slightly missed expectations. Revenue guidance was a bit short of estimates for next quarter, but the company also upped its share repurchase plan by $50 billion. 

In other words...mixed. And now to the chart.

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Daily chart of Facebook stock.

Daily chart of Facebook stock.

Earlier this month, Facebook fell on negative headlines — and there have been plenty of those.

However, it had us looking at the 200-day moving average, which is where the stock eventually found support. The stock is again trying to hold this measure on the current dip, although Tuesday’s action is threatening to break below it.

If Facebook stock can’t hold the 200-day moving average, it opens the door down to the 50-week moving average.

Near that level, bulls will need to see if this measure can hold. If it does, let’s see if Facebook stock can reclaim the 200-day. 

If it does, we’ll need to see if Facebook can take out the $330 level and its short-term moving averages. That would open the door to the gap-fill level near $338.

If Facebook stock can’t hold the 50-week moving average as support, it puts $300 on deck. Not only has that area been a key zone on both the upside and the downside, but it’s where the 161.8% downside extension comes into play.

Should Facebook fall to $300 and find its footing, it could be a solid dip-buying opportunity. At least for the short term.

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