Market Analysis: Despite Strong Report, META Shares Fall 3%

<img src="https://fxopen.com/blog/en/content/images/2023/10/meta.jpg" alt="Market Analysis: Despite Strong Report, META Shares Fall 3%" /><p>Like Google, META demonstrated that the price can fall if the quarterly report is better than expected:<br>→ Earnings per share: actual = USD 4.39, expectation = USD 3.63.<br>→ Revenue: actual = USD 34.15 billion, expectations = USD 33.56 billion<br>→ Number of daily active users: fact = 2.09 billion, expectation = 2.07 billion according to StreetAccount.</p><p>META&apos;s share price initially rose in post-market trading but then reversed course and fell more than 3% following cautionary comments from CFO Susan Lee about the impact of military conflict in the Middle East on the advertising market.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/10/262-.png" alt="Market Analysis: Despite Strong Report, META Shares Fall 3%" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/10/262-.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/10/262-.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/10/262-.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/10/262-.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Thus, the META stock price may have received a bullish boost from the psychological level of USD 300, but it is possible that it will receive a bearish one because the opening price on Thursday could be around USD 290.</p><p>In the analysis of the META share price on October 3, we paid attention to the candle from July 27, when the high of the year was formed — then, extremely high volumes were recorded on the NASDAQ exchange. They can be interpreted as the desire of large players to fix profits from long positions.</p><p>Since then, the price has updated its high of the year around the USD 325 level, but this update turned into a classic bear trap. Thus, a large-scale double top pattern has formed on the chart, which will most likely lead to a bearish breakout of the ascending channel (shown in blue).</p><p>When a breakout occurs, a gap will likely form, which can serve as resistance. The bulls may be given hope by the level of USD 175 per share, which previously supported META shares.</p>