Meta went up by 3.67% on a day when every other tech counters were red. While there was no catalyst during market hours to explain this rally, this boost may have come from Snapchat. Consider how Snapchat's movement has had a high impact on Meta in the past.
Snapchat rallies 8.69% on news that they will be doing restructuring and further cutting 20% of the workforce. Whether or not this is good for the company is still up for discussion. This rally reaction when restructuring is mentioned is pretty common for stocks that are beaten down very badly. This is because it invites fresh buyers who believe things can be turned around with the new restructuring. But... it also invites clueless traders who simply saw a big gap up.
Recall Peloton which went through a similar ordeal in Feb 20022
Recall Netflix in April 2022
After market hours, Reuters reveals that Meta has POSSIBLE plans to add more paid features to Whatsapp and Instagram aside from ads.
The keyword is POSSIBLE. They could not even elaborate on what kind of paid features. This does seem like Meta's desperate attempt to throw some stuff out just so investors have something to hold onto.
Unfortunately, Meta was up as high as 6.5% only to get sold down to 3.67% without even hitting the soft resistance at 170. Meta has been known to rally 3-4% without any form of catalyst.
While counters like Tesla, Apple, and Amazon were able to break through their resistance during the Fed Pivot "rally", Meta remain suppressed below 180. Stock movements now are very much macro-focus. For any form of bottoming or major rally to occur, it needs the help of the Federal Reserve. Currently, Federal Reserve is not an ally (for the bulls). Technically, Meta is ranging with no higher low.
What are the conditions to be bull?
Macro: A sigh of a true pivot, not the cross finger hoping for pivot
Fundamental: What are the POSSIBLE paid features?
Technical: 180 needs to be broken.
Snapchat rallies 8.69% on news that they will be doing restructuring and further cutting 20% of the workforce. Whether or not this is good for the company is still up for discussion. This rally reaction when restructuring is mentioned is pretty common for stocks that are beaten down very badly. This is because it invites fresh buyers who believe things can be turned around with the new restructuring. But... it also invites clueless traders who simply saw a big gap up.
Recall Peloton which went through a similar ordeal in Feb 20022
Recall Netflix in April 2022
After market hours, Reuters reveals that Meta has POSSIBLE plans to add more paid features to Whatsapp and Instagram aside from ads.
The keyword is POSSIBLE. They could not even elaborate on what kind of paid features. This does seem like Meta's desperate attempt to throw some stuff out just so investors have something to hold onto.
Unfortunately, Meta was up as high as 6.5% only to get sold down to 3.67% without even hitting the soft resistance at 170. Meta has been known to rally 3-4% without any form of catalyst.
While counters like Tesla, Apple, and Amazon were able to break through their resistance during the Fed Pivot "rally", Meta remain suppressed below 180. Stock movements now are very much macro-focus. For any form of bottoming or major rally to occur, it needs the help of the Federal Reserve. Currently, Federal Reserve is not an ally (for the bulls). Technically, Meta is ranging with no higher low.
What are the conditions to be bull?
Macro: A sigh of a true pivot, not the cross finger hoping for pivot
Fundamental: What are the POSSIBLE paid features?
Technical: 180 needs to be broken.