Face(book) Value! Is Meta’s 1-Year High About to Change Course?

FXOpen

One of the stalwarts of the North American corporate giants throughout an entire one-year period has been Facebook, which is now known by its new commercial designation, Meta.

Mark Zuckerberg’s focal point of social media could be regarded as a pioneering effort that moved the world away from traditional relay chat and email and fomented the fully digitalized social life that everyone lives these days.

A polarizer of opinion, Mr. Zuckerberg’s own ethos, has remained steadfast, and Facebook is, perhaps rather unbelievably, approaching two decades since its establishment.

During the past 12 months, when the stocks of well-capitalised tech giants and internet multinationals listed on New York’s exchanges have been going through periods of extreme downturns in value followed by robust recoveries, Facebook (Meta) stock has been on a very strong upward roll with very little sign of slowing down.

By June 5, this continued upward direction had resulted in Meta stock arriving at its highest point in over one year, at over $275 per share. This is a remarkable high point; however, something interesting has begun to take place.

Indicative pricing only

During the late morning in the US trading session on Tuesday, June 6, Meta stock took a sudden downturn in value and has been decreasing since. By the end of the US session yesterday, Meta stock had declined to $263.35 at FXOpen, a full $12 per share lower than its value earlier in the week.

There is very little negative media coverage, nor is there any significant change to a corporate policy that could perhaps have led to such a change in direction, the only important matter this week being Facebook’s introduction of a new overview for Instagram and Facebook users as a possible quelling measure toward antitrust litigation from national regulators.

This information came from the government department in Germany, which handles cartels, which reported that Meta is setting out new processes in order to increase transparency.

That is minor news, however, as Facebook has been under the regulatory microscope in its home market of the United States for antitrust concerns for some time now and was even the subject of a high-profile lawsuit on these grounds. Yet, the stock has been rising for over a year.

This is a very interesting direction for such a robust stock and one definitely worth watching.

The question remains: Is this a short-term but significant blip, or is it the end of a one-year roll for the world's oldest and most prominent social media company?

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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