Meta Platforms Inc. (META) just reported results: Revenue of $60.8 billion (slight beat) but earnings per share of $6.18, a clear miss versus the $7.14–$7.22 consensus range. The major support zone on Meta was at $550, which broke during after-hours trading, notes Danielle Shay, editor of Five Star Trader.
Third-quarter revenue guidance came in soft at the midpoint relative to estimates, and the company narrowed/raised the bottom end of its 2026 capex range. That still points to very heavy spending.
Meta Platforms Inc. (META)
The stock was down hard after the bell (reports of 4%–8% drops in the initial reaction). This is the classic pattern we’ve seen from several high-expectation names this season. The numbers (or the spend) just aren’t expanding the narrative enough. However, we will see if it can recover. If not, expect further downside and a further drag on the Nasdaq.
Indeed, the path of least resistance for the Nasdaq remains lower until we see a genuine reset in expectations or a clear return of volume and momentum on the long side (put/call and VIX spikes would help signal that).
The put/call ratio isn’t high enough to put in a low. It was around 0.85 at the close Wednesday. I like to see it above 0.9, preferably above 1, to see a strong move higher off the lows.
