Shares of Facebook parent Meta are dragging down the Nasdaq today with a 0.7% decline.
There are stories circulating about content moderation and that's the headline reason for the decline however I think the technicals are playing a big part here. The Meta chart gapped lower on earnings in late October, prompting CNBC's Jim Cramer to offer a tearful apology to longs in one of the more-obvious bottoms you'll ever see.
Meta began to fill the gap in the second week of October and yesterday it completed the job before reversing lower with the rest of the market. The technical close of the gap was the signal for longs to take profit or for shorts to pile in (take your pick) and shares are down 4.9%. today.
So what's next? The company came off the bottom after announcing job cuts and it's still a fairly cheap company. I suspect it will drift back to $110 initially and then trade around $100 until we get signs of a hard/soft landing in the economy and the advertising knock-ons that could go with it.
It would take a wider rout in the market to send it through the November lows.
