Keep an eye on Meta Platforms (META).
Over the last few days, the stock has been a disaster, gapping from $130 to less than $100.
All after poor earnings. EPS came in at $1.64, as compared to expectations for $1.89. Revenue came in at $27.71 billion, as compared to estimates of $27.38 billion. The company also forecast Q4 revenue of $30 billion to $32.5 billion, as compared to analyst expectations for $32.2 billion. Company costs and expenses were up 19% year over year to $22.1 billion. Operating income fell 46% to $5.66 billion. Operating margins fell to 20% from 36% year over year. And net income fell 52% to $4.4 billion.
But don’t count the stock out just yet.
After becoming brutally oversold, the stock is showing signs of life after US FCC Commissioner Brendan Carr said the U.S. should ban TikTok.
In fact, as noted by Axios.com, “It’s the strongest language Carr has used to date to urge action on TikTok. With more than 200 million downloads in the U.S. alone, the popular app is becoming a form of critical information infrastructure — making the app’s ownership by a Chinese parent company a target of growing national security concern.”
However, a ban is unlikely to happen, with TikTok confident it could reach an agreement with the U.S. to satisfy security concerns.