- On April 25th, despite surpassing Q1 earnings expectations, Meta's stock plunged 14%.
- Following the initial decline, Meta's stock has rebounded by more than 8%.
On April 25th, Meta Platforms Inc's (NASDAQ:META) stock fluctuation caught investors off guard, plunging 14% at the open despite surpassing Q1 earnings expectations with $4.71 per share, over the predicted $4.32.
Conventionally, positive earnings are thought to spell good news a stock price, but for Meta, it actually went down. The stock did manage to stabilize, finding its footing slightly above the key $400 round number, with the actual low tagging $414.
By the end of trading, there was a clear move towards optimism, indicating that buyers saw value in the lower prices. Interestingly, since the drop, Meta's stock has stayed above the $414 level, showing strong support and boosting investor confidence in reaching the all-time high of $531.
In the aftermath, Meta's stock has rebounded by more than 8%, a signal of growing investor confidence. Nonetheless, climbing back to the all-time high requires navigating through several hurdles.
For Meta, the $500 stock price is a psychological barrier that has historically played a dual role as support and resistance. It has become a focal point for investors, especially after the stock briefly crossed that level in March, only to linger around the milestone thereafter.
Despite facing volatility, Meta has managed a 27% gain year-to-date. This resilience suggests a potential for overcoming short-term hurdles, fostering a cautiously optimistic view for the remainder of the fiscal year.
After the closing bell on Thursday, May 2, the stock closed at $441.68, trading up by 0.55%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.