META
Trending Lower....
META is struggling badly. Employee layoffs over the past year have resulted in just over $1 billion in severance costs. Legals fees related to lawsuits have cost $2.4 billion.
Add to this investor concerns over AI spending.
Q2 earnings released yesterday summed it up. META missed its earnings target by a country mile. Investors were not happy. Shares are down hard as of here and now as I type these comments.
This chart of META clearly shows a series of lower highs since mid-2025. Not the kind of stock one wants to make a buy and hold investment in.
At the right side of this chart I used some Fibonacci math and was pleased to see the Fibonacci math aligning to the March-April run and the June-July recent rally.
Using these same techniques, I have calculated (back of the envelope) that a possible price target for META is $535. That is where price is at right now. Today’s violent selloff could be a low for META as investors step in to give the Company another chance to redeem itself. If today’s price levels do not hold, the dashed blue line points to a possible price target which would match the April 2025 lows.
Using Bayer’s Rules, I notice that tomorrow (July 31) marks a key date for a Rule 10-A projection from the June 25 swing low. This says there is a strong possibility that META is bottoming right now. If today is not the bottom, then the blue dashed line comes into focus with a date of August 17 or perhaps August 28.
Even if META does make a low today, the issue of the lower highs since mid-2025 still lingers like a skunk at a garden party. For less risk tolerant players, there are better places to put money to work right now.
Be sure to visit me at www.investingsuccess.ca