The Facebook parent is brushing off a first-quarter win
Meta Platforms Inc (NASDAQ:META) stock is down 13% at $429.32 at last glance -- its lowest level since Feb. 1 -- after the company's quarterly report. While the Facebook and Instagram parent's first-quarter earnings and revenue both topped estimates, a weaker-than-expected second-quarter revenue guidance is weighing on META this morning.
Options traders are rushing to place their bets after the event. Today's options pits show ample activity from both sides of the aisle, but bulls are edging out bears. Within the first hour of trading, 274,000 calls and 200,000 puts have been traded, which is six times the intraday average amount. The most popular contract is the weekly 4/26 400-strike put, where positions are being opened.
No fewer than 17 analysts slashed their price targets on Meta Platforms stock, with both Wedbush and J.P. Morgan Securities adjusting down to $480. There is room for additional price-target cuts, too, considering the 12-month consensus target objective of $518.17 is a 21.7% premium to current levels.
Despite today's dip, META is still up 20.3% in 2024, though it has lost nearly 13% so far this quarter. The security also just dipped below long-term support at its 100-day moving average, and is pacing for its third-straight weekly loss and second consecutive monthly dip.