The Meta share price has been in a strong bearish trend in the past few months as concerns about the company remain. The FB shares are trading at $195, which is significantly lower than last year’s high of $384. It has dropped by about 50% from its all-time high, bringing its market capitalization to $544 billion, meaning that investors have lost over $450 billion.
There are several reasons why the Meta stock price has crashed in the past few months. First, the company’s business has been significantly affected by the recent update by Apple. The iOS update enables people to choose whether they want to be tracked or not. Evidence shows that most people are turning the tracking feature off, which has affected how marketers target their ads. As a result, many advertisers in the US have abandoned Facebook for other platforms like Google.
Second, the FB stock price has also crashed because of the rising competition from TikTok. The Chinese app has become the most popular social media platform globally. As a result, Facebook has been forced to copy its products. While Reels has become a popular platform, monetizing it has been a major challenge.
Third, the Meta stock price has retreated because the company transitioned to the metaverse. While the industry has a promise, investors are sceptical about whether Facebook has what it takes to dominate the sector. Further, it will take a long for the industry to go mainstream. Amidst all this, many analysts have slashed their outlook for the stock.
Meta share price forecast
The daily chart shows that the FB stock price has been in a deep downward trend in the past few weeks. The crash accelerated when it delivered weak quarterly earnings. Now, the stock has moved below all moving averages and is yet to fill the gap formed that day. Therefore, with interest rates rising, there is a likelihood that the stock will continue falling as bears target the next psychological level at $150. This view will be invalidated if it moves above $210.