2 Social Media Stocks Reeling After Meta Earnings

Both PINS and TWTR's options pits are buzzing today

Deputy Editor
Feb 3, 2022 at 10:20 AM
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Social media stocks are taking taking a step back today, after Facebook's parent company Meta Platforms (FB) shed more than 25% after a dismal fourth-quarter earnings report. Two such names are Pinterest Inc (NYSE:PINS) and Twitter Inc (NYSE:TWTR).

The recent announcement of a potential acquisition by PayPal (PYPL) sent PINS spiraling. Pinterest stock was last seen 8.2% lower to trade at $25.09, marking its lowest level since July 2020. Now a far cry away from its Feb. 16 all-time high of $89.90, PINS sports a 67.4% year-over-year deficit.

Put traders are blasting PINS today. Already, 16,000 puts have been traded, which is six times the intraday average and more than the 12,000 calls that have exchanged hands. New positions are being sold to open at the most popular contract, the weekly 2/4 20-strike put.

TWTR, meanwhile, is down 5.9% to trade at $34.35 this morning. The equity has had a similarly rough year, shedding 20% already in 2022. Also trading at its lowest level since July 2020, Twitter stock has had multiple rallies cut short at the 30-day moving average over the last several months. Longer term, the shares are down 37% in the last 12 months.

The options pits are wild for Twitter stock, too, though its a much more even contest with 20,000 calls and 21,000 puts across the board so far -- double what's typically seen. The February 33 put is extremely popular, followed by the weekly 40 call from the same monthly series. 

A broader look shows puts have been more popular for both stocks in the last two week. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), PINS and TWTR sport 10-day put/call volume ratios that sit in the 82nd and 97th percentiles, respectively, of their 12-month ranges. In other words, long puts have been unusually popular of late. 

 

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